Rivatex East Africa Ltd in Eldoret will be expanded by the government next year at a cost of Sh4 Billion through donor funding. The company, which was previously owned by the government, was bought by Moi University . It was formerly known as the Rift Valley Textiles Company . India's Exim Bank will provide the loan to be used on expanding machinery at the textile firm, was revived by the university. The project is part of President Uhuru Kenyatta's package of development activities for the North Rift region. Yesterday, Uhuru was in the region to meet leaders and discuss the development agenda for the region. "The donor has already committed to finance the project and the final details are being worked out," said the President's adviser Joshua Kutunyi who was speaking in Eldoret town yesterday. He said that by expanding Rivatex, the company will employ more youth and revive the cotton industry in Western Kenya . Rivatex was a leading manufacturer of textiles in the country before the company went under due to mismanagement and debts along with other challenges in the cotton sector. Among other clients, the company was a major supplier of military uniforms and was also exporting part of its products to European markets. Moi University vice chancellor Richard Mibei initiated the buy-out plan after the company collapsed. The university revived all the firm's operations but the company needs new machinery to be cost effective. The firm is run by the university's technology department. Kutunyi said the company will work with the government on the plans to set up a fertiliser plant near Moi Barracks . Investors from Russia have agreed to fund the fertiliser plant and they will soon be visiting Kenya for further negotiations . One hundred acres of land has been set aside for the fertiliser plant. "The fertiliser project will proceed as planned because the government is committed to providing cheap farm inputs for farmers to increase food production," Kutunyi said.
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