Twiga Foods, one of Africa’s best-funded agri-tech startups, has announced a temporary two-month suspension of its Nairobi operations as part of a larger business overhaul. The company is entering the “final stage” of a strategic pivot aimed at transforming its core operations and expanding into the fast-moving consumer goods (FMCG) sector.
Twiga Foods Restructures Amid Market Challenges
Founded in 2014, Twiga Foods is a Kenyan B2B agri-tech company that digitizes food distribution by connecting farmers, FMCG manufacturers, and retailers through a tech-enabled supply chain. The platform eliminates costly intermediaries, improving transparency and significantly reducing food prices for consumers.
Twiga raised US$50 million in Series C funding in 2021 and secured an additional US$35 million in 2023, positioning it as a leading player in Africa’s agri-tech ecosystem. However, the startup has recently faced financial challenges amid a global funding slowdown, including:
- A 40% workforce reduction in 2023
- Allegations of delayed vendor payments and salary issues
- The exit of CEO Peter Njonjo, replaced by Charles Ballard, former Jumia Kenya executive
Nairobi Operations Temporarily Halted for Relocation and Restructuring
The current “operational break” allows Twiga to relocate its distribution hub from Tatu City in Kiambu County to a more strategically located facility closer to Nairobi. This move is part of a wider restructuring that includes:
- Formation of a new holding company (“NewCo”)
- Job cuts affecting over 300 employees
- Shift from fresh produce supply to FMCG distribution
Twiga Foods Expands Into FMCG With Key Acquisitions
As part of its pivot, Twiga Foods is transitioning into a full-service FMCG platform, and recently acquired majority stakes in three local FMCG companies:
- Jumra
- Sojpar
- Raisons
These acquisitions are designed to:
- Enhance Twiga’s procurement capabilities
- Expand operations across Central, Western, and Coastal regions of Kenya
- Broaden its product offering to better serve retailers with a diverse range of goods
A New Chapter for Twiga Foods
Despite recent challenges, Twiga’s shift into the FMCG space represents a bold move to diversify revenue streams and create a more resilient, scalable business model. The company remains committed to leveraging technology to transform food and goods distribution in Kenya and across Africa.
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