The national government will be carrying out a comprehensive audit of the Rift Valley Textiles Limited (Rivatex) to facilitate proper placement of the Sh4.5 billion grant given by the government of India last week in a bid to revive the factory.
Agriculture Principal Secretary Richard Lesiyampe said a technical committee has been established to audit Rivatex and Kisumu Cotton Mills (Kicomi), which collapsed in the early 1990s.
“The audit will focus on and take stock on governance structures, assets and technology used in the two companies and go back to the drawing board to ascertain the gaps,” said the PS.
Lesiyampe who was speaking on the sidelines of a two-day end of the national workshop on the development of national cotton classification systems in Kenya and Mozambique in Nairobi, said the inquiry into the companies will also help determine how much resources will be committed for their revival.
“Our aim is to reorganise the industry with the aim of involving the private sector. We urge local farmers to redouble their efforts in farming cotton in order to meet the growing demand in various global market segments especially in the AGOA,” he said.
Lesiyampe further added that the fund will complement strategies being undertaken to revive the cotton industry.