Agritech startup Twiga Foods is set to lay off a number of its workforce amid a two-month freeze of operations within Nairobi, coming slightly under two years since the firm undertook a similar exercise in August 2023.
On Thursday, the firm announced that it would be pausing its operations in Nairobi for 60 days until August this year while it develops an alternative distribution centre in a more strategic location.
It said the freeze will give room for structural realignment following its recent acquisitions of majority stakes in three regional fast-moving consumer goods distributorships, as it seeks to diversify its product offering from fresh farm produce.
“The reorganisation impacts a certain number of roles, mainly within supply chain functions. This workforce adjustment process is being conducted transparently, respectfully, and in strict compliance with Kenyan labour laws and internal company policies,” said the firm in a statement.
“Twiga Foods is committed to supporting all affected employees during this period.”
The firm did not disclose the number of employees that will be impacted, as well as details on where the new distribution centre will be situated when reached for comment.
On dues owed to suppliers, the firm simply said it is “actively engaging its customers, suppliers and business partners to ensure a smooth transition and minimise any potential disruptions.”
Twiga has been on a rough ride since 2023 when it sparked speculations of embarking on a downhill path after issuing redundancy notices to over 250 members of its workforce then, which came as an industry shocker for a company that had attracted more than Sh23.2 billion in investor funding.
This was in addition to enjoying government goodwill, a classic example being President William Ruto’s announcement in November 2022 that the firm would receive Sh300 million loan from the Hustler Fund for onward lending to suppliers.
Twiga, which employs technology to connect suppliers and consumers of agricultural products, had earlier been allotted land at the State-backed Galana-Kulalu project to undertake a pilot scheme upon which the expansion to 20,000 acreage of maize farming would be modelled.
The turbulence would later engulf the company’s founder and long-serving CEO Peter Njonjo who exited in January last year after a decade at the helm, leaving the startup’s control in the hands of foreign shareholders.
Upon Njonjo’s exit, the agri-tech firm tapped ex-Jumia boss Charles Ballard to steer the navigations into the current transition.
