Rivatex Announces Mass Firing of Permanent and Contract Employees

Rivatex East Africa SEZ Limited has announced the termination of contracts for both permanent and contract employees as part of a company-wide restructuring under the Leasing framework.

In a notice dated September 3, the company stated that the move complies with Section 40 of the Employment Act 2007.

“Following the ongoing restructuring of Rivatex East Africa SEZ Limited under the Leasing framework, and in accordance with Section 40 of the Employment Act 2007, the Company hereby issues notice of termination of your services on account of redundancy,” read part of the notice.

Staff on fixed-term contracts whose agreements expired on 30th August 2025 will not have their contracts renewed.

Permanent, pensionable, and long-term contract employees have been issued a three-month notice period, effective September 3, 2025, with November 30, 2025, as their last working day.

Rivatex Confirm Terminal Benefits and Clearance

The Rivatex company confirmed that all affected employees will receive lawful terminal benefits, including salaries up to the last working day and any other outstanding dues.

Staff are required to clear with the Human Resource Division to facilitate the release of dues and the issuance of clearance certificates.

Management emphasized that the layoffs are being carried out in accordance with all applicable labour laws and guidelines issued by the Ministry of Investment, Trade, and Industry.

In an internal memorandum, the Rivatex Acting Managing Director thanked employees for their service.

“We sincerely thank you for your dedicated years of service and wish you success in your future endeavours,” he said.

The notice has also been copied to the Labour Office, all Heads of Departments, and the Human Resource & Development Manager to ensure proper adherence to due process.

Rivatex East Africa Instability

Rivatex, a fully owned subsidiary of Moi University, has faced ongoing losses despite significant investments in its operations.

Also Read: Mass Layoffs to Hit Moi University as it Issues Redundancy Notice

In September 2024, Moi University’s management came under scrutiny after it was revealed that the institution had secured a Ksh3 billion loan from Exim Bank to modernise the company, following an initial Ksh600 million purchase of the textile manufacturer.

The university’s decision to invest in a textile company raised questions, particularly because only a small percentage of its 30,000 students are enrolled in textile-related courses

An audit by Auditor-General Nancy Gathungu also revealed that Rivatex was grappling with numerous financial challenges, including failing to pay suppliers and accumulating losses.

The audit report revealed that the textile manufacturer, based in Eldoret, was unable to settle Sh56.9 million to its suppliers and had outstanding obligations, including remitting employees’ pensions and Sacco deductions.

Also Read: Mass Layoffs Loom as International Conglomerate Plans to Fire Over 2,000 Kenyan Workers

“The trade and other payables ageing analysis provided for audit review revealed that payables for goods, services rendered, and works done amounting to Sh10,851,170 have been outstanding for more than 18 months,” Gathungu explained.

 Ruto Approves Privatisation of the Company

In July 2025, President William Ruto confirmed the onboarding of the private sector offtaker.

Speaking at the Presidential Roundtable with KEPSA, he said the offtaker, set to join on July 10, would provide seeds and other support to farmers to ensure the industry’s “huge capacity” operates effectively.

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