Rivatex East Africa SEZ Limited is implementing a sweeping layoff of employees as part of its ongoing restructuring programme, citing redundancy in line with the Employment Act, 2007.

In an internal memorandum dated September 3, 2025, and addressed to all employees, Acting Managing Director CPA Stanley Bett confirmed that the textile company is terminating contracts across the board under the leasing framework.

“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,” the memo read in part.

According to the communication, employees on fixed-term contracts whose terms lapsed on August 30, 2025, will not have their contracts renewed.

On the other hand, staff on permanent and pensionable terms, as well as those on long-term contracts, will have their employment terminated effective September 3, 2025, with a three-month notice period leading to their last working day on November 30, 2025.

Bett assured the staff that the process will comply with all labour laws and government guidelines provided by the Ministry of Investment, Trade and Industry.

"The company shall follow the due process provided in all applicable labour laws regarding employment separation on the account of redundancy and guidelines provided by the Ministry of Investment, Trade and Industry and any other relevant guidelines," the memo added.

In terms of entitlements, employees on fixed-term contracts will be paid salaries up to August 31, 2025, while those on permanent and pensionable or long-term contracts will continue receiving salaries up to November 30, 2025.

All other lawful outstanding dues will also be settled.

Employees have also been directed to complete clearance with the Human Resource Division to facilitate the release of their dues and issuance of certificates of service.

"You are all required to clear with the Human Resource Division as per your respective employment terms to facilitate the release of your dues and issuance of a certificate of service.

"On behalf of the Board of Directors and the Management, I wish to sincerely thank you for your dedicated years of service and wish you success in your future endeavours," the memo concluded.

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

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.

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

The restructuring at Rivatex comes at a time when Kenya’s textile industry is grappling with stiff competition, rising operational costs, and pressure to align with regional and global value chains.