Kenyan textiles maker seeking to expand through AGOA
Textiles maker Rivatex East Africa Ltd is eyeing regional and international markets with its planned Sh6 billion upgrade.
The modernisation drive will increase cotton consumption from 10,000 bales per day against a projected capacity of 100,000, translating to a daily production rate of 40,000 metres, up from the previous 5,000.
Managing Director Thomas Kipkurgat said the firm was targeting the AGOA (US) market through the Export Processing Zone (EPZ) as well as in East Africa and other parts of the continent.
“We expect to complete the modernisation by the end of April and enhance efficiency and quality,” said Prof Kipkurgat.
Won contracts
The firm won contracts to produce materials used to make new police uniforms and for other government agencies such as Kenya Power, the Geothermal Development Company, various hospitals as well as gowns for public and private universities, he said.
Rivatex secured a Sh3 billion loan from the Indian government last year and an additional Sh3 billion from the Treasury to replace its obsolete machines.
Prof Kipkurgat said the firm is targeting 40,000 cotton growers and more than 22 cotton-growing counties.
Cotton production is also headed for brighter times after Rivatex announced it will purchase the seed cotton at between Sh47 and Sh50 per kilogramme.
“We are sensitising farmers to take advantage of the modernisation to provide us with the raw materials. This will result in job opportunities for more than 40,000 farmers directly,” said Prof Kipkurgat.
Huge relief
For the past two years, a kilogramme of cotton has been fetching between Sh46 and Sh48 and the new price will come as a huge relief for farmers.
The firm has reached contractual agreements with farmers and ginneries to shore up production.
Rivatex has been using free cotton seeds and free pesticides to woo cotton farmers who abandoned the crop when the textiles industry collapsed.
Some 20,717 hectares are under cotton, with a kilogramme of the produce currently fetching Sh46, shows data from the Fibre Crop Directorate, an agency in the Agriculture and Food Authority.
Read related news articles
Kenya: 4th AmCham business summit to advocate for enhanced partnership and investment In US-East Africa trade
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya. Kenya’s President William Ruto is confirmed as Chief Guest, leading a government delegation to the summit that aims to expand commercial opportunities and markets....
19 March 2024
US President Biden to welcome Kenyan President Ruto to the White House in May
President Joe Biden plans to welcome Kenyan President William Ruto to the White House in May, hosting a state visit after reneging on his promise to visit Africa last year. White House press secretary Karine Jean-Pierre said Friday that the visit set for May 23 will mark the 60th anniversary of U.S.-Kenya diplomatic relations and "celebrate a partnership that is delivering for the people" of both countries while affirming "our strategic...
18 February 2024
'Nigeria missing as Kenya, Ghana tap AGOA opportunities to boost foreign exchange earnings'
Africa’s biggest economy is still failing to tap the opportunities that the African Growth and Opportunity Act (AGOA) present to boost its foreign exchange, amid acute dollar shortages. The AGOA has been on for over twenty-three years as it was enacted in 2020. In 2015, the program was modernised and extended to 2025, implying that there are only about 15 months before the window closes. Some countries have taken advantage of the AGOA more...
05 February 2024
Kenya-US to deepen ICT, apparel and agriculture trade
Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms. A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...
09 November 2023
Kenya President Ruto joins US-Kenya business roadshow in San Francisco
Kenya's President William Ruto will address leading US technology companies and investors on Friday at the US-Kenya Business Roadshow in San Francisco organised by the American government’s Prosper Africa initiative. The roadshow - also co-organised by the US Embassy in Nairobi - highlights the business and investment potential in Kenya’s booming tech sector, a statement from the US Embassy in Kenya said. The event is part of a...
15 September 2023
AGOA boosts Kenya's textile exports to US, sector sees 7.2% growth
The African Growth and Opportunity Act (AGOA) has benefitted Kenya’s textile and apparel sector, leading to monthly exports to the tune of Sh4.5 billion, or Sh150 million per day, last year, according to a study by London-based Institute of Economic Affairs (IEA). The programme has had a positive impact on the country’s export-processing zones (EPZs), especially in the textile and garment sector. Kenya is the second-largest exporter of...
08 August 2023
US fashion brands urge early renewal of AGOA
US fashion companies are calling for the early renewal of the African Growth and Opportunity Act (AGOA), a trade program that allows thousands of African products to enter the United States duty-free. They argue that a longer-term arrangement would not only benefit African economies but also boost investment in the region. The AGOA was first enacted in 2000 and is currently set to expire in 2025. However, US officials have indicated that the...
31 July 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
US boosts Kenya apparel industry with $55m in new trade deals
The US is giving Kenya $55 million for expansion of export processing zones in a move that will boost Nairobi’s apparel exports. US initiative Prosper Africa and the US Embassy announced the funding at the launch of the US-Kenya Business Roadshow held on April 25 in New York. The announcement was part of the commitments made by President Joe Biden at the US-Africa Leaders’ Summit last year. The funds will be channelled under USAid and...
29 April 2023
Why Africa, why Kenya? Remarks by US Ambassador to Kenya
Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San...
26 April 2023