- In her latest audit report on the company for the year ending June 30,2023, Gatungu noted that the company had incurred an accumulated loss of over sh 3.04 Billion.
- The management attributes the poor performance to constant lack of raw materials such as cotton
Image: BY MATHEWS NDANYI
Rivatex East Africa Limited has denied reports that it is on the verge of collapse due to heavy losses running to more than Sh3 billion.
Auditor General Nancy Gathungu had said the continued existence of the firm was in doubt due to losses and huge debts.
In her latest audit report for the year ending June 30, 2023, Gathungu noted that the company had incurred an accumulated loss of over Sh3.04 billion.
“The management attributes the poor performance to constant lack of raw materials such as cotton,” Gathungu said.
The company cited high costs of operations including heavy expenditure on electricity, water, fuel repairs and and labour among other expenses.
However, CEO Thomas Kipkurgat says the firm based in Eldoret is stable, despite the challenges associated with shortage of cotton and electricity among other costs.
“It’s not true that Rivatex is on its knees. We are operating well and even projecting a brighter future,” Kipkurgat told the Star.
The company stands as a beacon of progress and sustainability, with a rich history and a dynamic vision for the future.
Kipkurgat termed Rivatex as a success story, noting that it had been fully revived after it initially collapsed.
“At the core of Rivatex’s success is its ability to blend traditional techniques with cutting-edge technology. The company has embraced modern manufacturing processes, incorporating state-of-the-art machinery and digital systems that enhance efficiency and product quality,” he said.
From spinning and weaving to dyeing and finishing, Rivatex’s facilities are equipped with the latest technology to produce textiles that meet international standards.
The company is more than a textile manufacturer, the CE said, but also a catalyst for economic growth, job creation and technological advancement in the region.
Due to its progress in the recent years Rivatex’s impact extends beyond its production lines.
“The company is deeply committed to social responsibility, with a focus on empowering local communities. It provides employment opportunities for thousands of individuals, contributing significantly to the region’s economy,” he said.
Kipkurgat noted that the firm was a resilient firm with strong foundations.
“In every thread and fiber produced, Rivatex East Africa Limited weaves a story of resilience, innovation and a brighter future for the region.”
The firm remains open in all its operations and the auditor general was free to continuously point out weakness and other issues which were eventually addressed as required, he added.
The CEO urged Kenyans to "have faith in the company" and continue to support its operations, especially as concerns the growing of cotton, which is its main raw material.