Twiga Foods, a prominent Kenyan agritech firm, has recently made headlines with its strategic move to acquire majority stakes in three regional fast-moving consumer goods (FMCG) distributors: Jumra, Sojpar, and Raisons. This acquisition marks a significant shift for Twiga as it looks to expand its product offerings beyond fresh produce and enhance its distribution capabilities across Kenya.
Jumra, operating in Nairobi and Central regions, Sojpar serving the Western region, and Raisons covering the Coastal region, bring established networks that Twiga aims to leverage to reach a wider audience and deliver a diverse range of products to retailers and consumers. By integrating these distributors, Twiga is set to revolutionize Kenya’s food distribution landscape, combining market knowledge with advanced technology and analytics.
However, amidst these ambitious expansion plans, Twiga has faced internal turmoil and financial struggles. In early 2024, founder and former CEO Peter Njonjo resigned from the board following operational challenges, including staff layoffs and delayed payments to suppliers. Charles Ballard, previously the CEO of Jumia Kenya, stepped in as the new CEO to lead the company through a transformation phase.
In 2023, Twiga encountered a liquidation threat from Incentro Africa over a disputed $261,878 debt related to Google Cloud services. The company disputed the claim, securing a court order to prevent liquidation, and eventually settling the dispute after securing new investments. Additionally, Twiga underwent significant restructuring, including a 40% reduction in its workforce, to streamline operations and cut costs for sustainable growth.
Despite these internal challenges, Twiga’s recent acquisitions signify a bold move towards expanding its market presence and product range. The success of this strategy will hinge on effective leadership, financial stability, and the agility to navigate the dynamic FMCG landscape in Kenya. As the company strives to integrate new operations while addressing internal issues, it remains to be seen how Twiga will navigate these challenges and emerge stronger in the competitive market.
