Twiga Foods Shifts Strategy with Key Acquisitions in Kenya’s FMCG Sector

Twiga Foods, a Kenyan B2B e-commerce company, is overhauling its business model by acquiring controlling stakes in three local FMCG distributors—Jumra, Sojpar, and Raisons.

The move marks a pivot from Twiga’s earlier capital-heavy approach, where it managed its own farms, delivery fleet, and supply chains. The company is now adopting a hybrid model that integrates software and procurement systems while outsourcing logistics to third-party partners.

The acquired distributors will retain their management and continue operations independently, with Twiga providing digital tools such as warehouse systems, route optimization, and data analytics.

“These acquisitions are a key step in our strategic transformation,” a Twiga spokesperson told TechCabal. “They enable Twiga to scale quickly and efficiently by leveraging these distributors’ market experience and operational capabilities.”

Twiga’s new model gives it access to eight distribution centers across Central, Coast, and Western Kenya, avoiding the cost of building new infrastructure. The value of the deals remains undisclosed.

This shift follows the closure of Twiga’s commercial farming unit and a move to an asset-light model in 2023. The company previously handled operations internally to control quality and pricing, but incurred high fixed costs.

Twiga now aims to serve informal retailers, while the acquired firms continue focusing on formal trade. Joint procurement is planned for some products, although Twiga has not detailed how decision-making will be coordinated.

“We are moving to a leaner, disciplined model with improved margins and working capital,” the company said.

Twiga is also considering relocating its main logistics hub from Tatu City to areas like Syokimau or Mombasa Road to cut delivery costs and improve efficiency, signaling a shift from long-term infrastructure investment to cost control.