India Exim Bank advances Sh3b for Rivatex revival

India’s Export Import Bank has extended a line of credit of Sh3 billion for the revival of the Rift Valley Textile Mills (Rivatex).

This is the second line of credit from the Exim bank of India to the beleaguered textile factory after releasing Sh5 billion in 2013 to buy new machinery.

Speaking during the signing of the bilateral agreement, President Uhuru Kenyatta said the financing deal is an indication of the strong ties between the two countries, with expectations that the two countries can collaborate more.

“I’m also particularly pleased that the Indian Exim bank has extended a facility of $30 million which will go towards the revival of the Rivatex textile factory,” President Kenyatta said.

Indian Prime Minister Nerendra Modi is in the country on a two day state visit.

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.

The government last year pumped in Sh680 million into Rivatex to expand the textile plant and buy equipment to facilitate operations.

Rivatex is currently managed by Moi University which took the over the firm in 2007 after it was placed under receivership.

The Exim bank of India will also provide credit to the tune of Sh1.5 billion for the Industrial Development Bank. The funds will be used for lending to small and medium enterprises.