Home News Rivatex East Africa Announces Staff Layoffs Amid Restructuring

Rivatex East Africa Announces Staff Layoffs Amid Restructuring

Rivatex East Africa Announces Staff Layoffs Amid Restructuring
Rivatex East Africa Announces Staff Layoffs Amid Restructuring
  • Rivatex East Africa SEZ Limited issues termination notices due to redundancy.
  • Fixed-term contracts ending August 30, 2025, will not be renewed.
  • Permanent and long-term staff receive a three-month notice, ending November 30, 2025.
  • Lawful terminal benefits, including salaries and outstanding dues, will be paid.
  • Layoffs follow ongoing financial challenges and university-led investments in the company.

In a notice dated September 3, Rivatex East Africa SEZ Limited informed employees that their services were being terminated due to redundancy, citing Section 40 of the Employment Act 2007.

The notice stated:

“Following the ongoing restructuring of Rivatex East Africa SEZ Limited under the Leasing framework… the Company hereby issues notice of termination of your services on account of redundancy.”

Employees on fixed-term contracts ending August 30, 2025, will not have their contracts renewed. Permanent, pensionable, and long-term contract employees were given a three-month notice period, making November 30, 2025, their last working day.

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Rivatex confirmed that all affected staff would receive lawful terminal benefits, including salaries up to the last working day and any outstanding dues.

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

Management emphasised that the layoffs comply with all applicable labour laws and Ministry of Investment, Trade, and Industry guidelines.

In an internal memorandum, the Acting Managing Director expressed gratitude:

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

The notice was also copied to the Labour Office, Heads of Departments, and the Human Resource & Development Manager to ensure proper procedure.

Rivatex, a subsidiary of Moi University, has faced ongoing financial instability despite significant investments.

In September 2024, Moi University secured a Ksh3 billion loan from Exim Bank to modernise the company, following an initial Ksh600 million purchase of the textile manufacturer. The decision raised questions as only a small fraction of the university’s 30,000 students study textile-related courses.

An Auditor-General report revealed that Rivatex struggled to pay suppliers, remit pensions, and settle Sacco deductions, with outstanding debts including Sh56.9 million to suppliers.

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