Twiga Foods, a prominent Kenyan agritech company, has made a significant move by acquiring majority stakes in three local distributors—Jumra, Sojpar, and Raisons. This strategic decision marks Twiga’s shift from being solely a supplier of farm-fresh produce to a comprehensive fast-moving consumer goods (FMCG) platform. While this move showcases Twiga’s ambition to strengthen its position as Kenya’s leading B2B e-commerce player, it has been met with allegations of corporate restructuring aimed at evading financial responsibilities.
The official announcement from Twiga Foods confirmed the acquisition of controlling interests in Jumra, Sojpar, and Raisons, based in Nairobi, Kisumu, and Mombasa respectively. These acquisitions are expected to enhance Twiga’s procurement capabilities and expand its reach across the Central, Western, and Coastal regions of Kenya.
“This strategic alignment underscores Twiga’s dedication to modernizing Kenya’s food distribution landscape,” the company stated. “The combined strengths will facilitate a digitally powered distribution model that delivers added value to Kenyan retailers and consumers.”
Although specific transaction values were not disclosed, Twiga emphasized that the acquired distributors would retain leadership roles in the newly consolidated operation. Additionally, the company revealed plans to resume operations in Western Kenya, an area it had exited in 2021 following a significant business model overhaul.
Established in 2014, Twiga Foods quickly gained recognition as a promising agritech venture in Africa, known for its digital approach to optimizing food supply chains between farmers and informal retailers. With investments from notable firms like Goldman Sachs, IFC, and Creadev, Twiga raised over $160 million through various funding rounds.
However, the company faced challenges in recent years, including a substantial workforce reduction of 40% in 2023, amidst reports of delayed payments to vendors and unpaid staff salaries. Following a $35 million fundraising round in early 2024, Peter Njonjo stepped down as CEO, with Charles Ballard, a former Jumia Kenya executive, taking the helm to steer the company towards operational stability and profitability.
Despite these leadership changes and strategic shifts, concerns regarding Twiga’s financial health persist.
A report by local tech publication Tech-ish has raised questions about Twiga’s recent actions. The report, citing internal whistleblower documents, alleges that the company is executing a soft liquidation strategy through a restructuring plan under a newly incorporated entity known internally as “NewCo.”
The leaked materials outline a detailed plan named “Project Easter,” purportedly aimed at shutting down the current business structure while transferring key assets, contracts, and a small portion of the workforce to the new entity. The restructuring plan, set to be implemented by August 2025, includes licensing the Twiga brand and customer database to NewCo, relocating from their current lease at Tatu City to a more modest location in Syokimau, outsourcing warehousing and supply management to third-party logistics providers, and rehiring only a fraction of the existing workforce.
The whistleblower alleges that this restructuring is a ploy to avoid financial obligations such as commercial leases, employee severance packages, and unpaid vendor bills while continuing operations under a new corporate identity.
The report also highlights concerns about the company’s workplace culture, citing micromanagement, operational inefficiencies, and alleged biases in hiring practices. The whistleblower claims that senior Kenyan professionals have been sidelined in favor of foreign executives, some of whom lack the requisite experience or qualifications for their roles.
While Tech-ish acknowledges limitations in independently verifying all claims, the leaked documents align with previous reports on Twiga’s funding rounds, layoffs, and organizational changes.
Twiga’s recent acquisitions reflect a broader trend in Kenya’s digital commerce and agritech sectors, where companies are diversifying revenue streams amid financial constraints and escalating operational expenses. However, the manner and timing of Twiga’s actions, alongside the allegations of financial misconduct and governance issues, have raised concerns among stakeholders.
As Twiga integrates Jumra, Sojpar, and Raisons into its operations, uncertainties remain regarding the fate of former employees, the legal ramifications of its restructuring plans, and the credibility of its new leadership.
Despite Twiga’s mission to digitize and democratize food distribution in Africa, its future success may hinge on its ability to rebuild trust among employees, suppliers, and investors, amidst the backdrop of these challenges. It’s a fact that the world is changing at a rapid pace. In today’s fast-paced society, it’s more important than ever to stay informed and up-to-date on current events and trends. This is where online news sources come in handy.
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