The future of hundreds of workers at Rivatex East Africa SEZ Limited now hangs in the balance after the Eldoret-based textile giant announced mass layoffs as part of an aggressive restructuring exercise tied to its new leasing framework.
In an internal memo dated September 3, Acting Managing Director Stanley Bett informed staff that both permanent and contract employees will be affected, marking one of the most sweeping workforce shake-ups in Kenya’s textile industry in recent years.
“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 stated.
Who is Affected?
Employees on fixed-term contracts that expired on August 30, 2025 will not have their contracts renewed. Meanwhile, workers on permanent, pensionable, and long-term contracts will serve a three-month redundancy notice, with their last day of work set for November 30, 2025.
Rivatex, which has been a flagship state-owned textile firm, was recently leased to a Dubai-based investor in what government officials touted as a revival plan for struggling parastatals. But the restructuring has come at a heavy human cost for its workforce.
Assurances and Entitlements
Bett reassured employees that the redundancy process would strictly follow Kenyan labour laws and guidelines from the Ministry of Investment, Trade, and Industry.
Fixed-term contract staff will be paid up to August 31, 2025.
Permanent and long-term contract employees will continue to draw salaries until November 30, 2025.
All lawful outstanding dues and benefits will also be settled.
“All employees are required to clear with the HR Division to facilitate the release of dues and issuance of certificates of service,” the memo added, while thanking staff for their years of service.
Part of a Larger Trend
The layoffs at Rivatex mirror recent turbulence in other state-owned firms. Barely six weeks earlier, Nzoia Sugar Company also announced impending redundancies following the government’s decision to lease all sugar mills to private investors.
Nzoia Sugar’s Managing Director Ezron Kotut similarly cited compliance with labour laws and collective bargaining agreements, promising staff that all entitlements would be honored.
Shockwaves in Eldoret and Beyond
The news has sent shockwaves across Eldoret, where Rivatex is not just a major employer but also a symbolic anchor of Kenya’s once-thriving textile sector. Union officials and community leaders are already voicing concerns about the broader economic impact of the layoffs on families and businesses in the region.
Analysts warn that while leasing state firms to private players could inject efficiency and capital, the short-term fallout in job losses risks fuelling discontent, especially in industrial towns like Eldoret that rely heavily on such parastatals.
As the clock ticks towards November 30, Rivatex workers now face the stark reality of life after redundancy—caught between promises of compensation and the uncertainty of securing new employment in an already struggling job market.
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