Cotton factory unlikely to roar back to life soon

What you need to know:

  • Mr Surji Singh, one of the receiver managers, said the revitalisation of the sector would only be achieved if a functional cotton development board was established and other reforms introduced.
  • The House committee’s Chairman, Mr Benjamin Langat, asked the Industrialisation ministry to table a report on the factory’s revival in one month.
  • Governor Jack Ranguma said the county had written to the National Land Commission to revoke titles of underutilised plots owned by companies.

Chances of reviving the collapsed Kisumu Cotton Mills any time soon are slim.

Receiver managers of the firm also told the National Assembly’s Committee on Finance, Planning and Trade that the textile industry in the country was no longer viable.

They spoke when the House team visited the factory on Sunday.

The managers blamed the proliferation of second-hand clothes on the market for the troubles facing the cotton sector.

Mr Surji Singh, one of the receiver managers, said the revitalisation of the sector would only be achieved if a functional cotton development board was established and other reforms introduced.

“We have failed to address the root cause of the problem yet everyone speaks of reviving the Kisumu Cotton Mills (Kicomi). The production of cotton needs to be addressed to make the sector vibrant,” he said. He asked the legislators to consider other options that would see full utilisation of the land occupied by the factory.

“Concern has been raised that the factory is idle yet has the potential to create more than 2,500 jobs through agro-processing, among other options,” said Mr Prithi Singh, the company’s Finance Director.

The House committee’s Chairman, Mr Benjamin Langat, asked the Industrialisation ministry to table a report on the factory’s revival in one month.

Mr Langat said the high cost of running a business in Kenya was to blame for the collapse of factories.

“We have learnt from visits to Rivatex, Pan Paper and now Kicomi that it is very difficult to run businesses in Kenya. We, therefore, ask the ministry to work with them to solve the problem,” said Mr Langat.

ENERGY NEEDS

He asked the government to address the energy needs of factories as well as grow raw material supply chains.

During a courtesy call on the governor, the legislators were told that land remains an impediment to industrialisation. Governor Jack Ranguma said the county had written to the National Land Commission to revoke titles of underutilised plots owned by companies.

Mr Ranguma said the cotton factory could not be revived unless the county allowed the production of biotechnology cotton.

“We are pushing for a joint economic bloc that wants to grow biotechnology cotton. Unless we achieve this, the industries may take longer to revive,” he said.