Kenya’s Twiga Foods Halts Nairobi Operations

Kenyan agri-tech startup Twiga Foods has temporarily suspended its Nairobi operations for two months as part of what it calls the “final stage” of a business transformation aimed at reshaping its role in the country's retail ecosystem.

Twiga is using the break to relocate from its current hub at Tatu City, Kiambu County, to a more strategically located facility. “The company is actively engaging with its customers, suppliers, and business partners to ensure a smooth transition and minimise any potential disruptions,” it said.

This comes amid broader restructuring, including the creation of a new holding company and job cuts affecting over 300 employees, particularly within the supply chain unit. “This workforce adjustment process is being conducted transparently, respectfully, and in strict compliance with Kenyan labour laws and internal company policies,” Twiga stated.

The company says the reorganisation is designed to align its model with market needs. “These strategic decisions, taken with careful consideration, are necessary to build a stronger, more resilient organisation that is well-equipped to scale and meet the demands of Kenya’s dynamic market.”

Founded in 2014, Twiga has been a key player in digitising Kenya’s agricultural supply chain, connecting farmers directly to retailers and cutting out intermediaries. The startup raised $50 million in Series C funding in 2021 and secured an additional $35 million in late 2023. However, amid a global funding slowdown, the company has faced financial pressure, including delayed payments and a 40% staff reduction last year.

Twiga recently acquired majority stakes in local FMCG firms Jumra, Sojpar, and Raisons to support its pivot to a full-service distribution platform. “The measures announced represent the final steps in Twiga’s journey to transform its business model, ensuring financial sustainability, competitiveness, and the ability to lastingly serve Kenya’s retail ecosystem.”