In a bold but controversial pivot, Kenyan agritech company Twiga Foods has acquired majority stakes in three local distributors — Jumra, Sojpar, and Raisons — as it accelerates its transition from a farm-fresh produce supplier into a full-service fast-moving consumer goods (FMCG) platform. While the move signals Twiga’s ambition to cement its place as Kenya’s leading B2B e-commerce player, it comes amid swirling allegations of corporate restructuring aimed at circumventing financial obligations.

In an announcement, Twiga Foods confirmed it had taken controlling interests in the Nairobi-based Jumra, Kisumu’s Sojpar, and Raisons, based in Mombasa. These acquisitions are expected to strengthen Twiga’s procurement capabilities and widen its national footprint across the Central, Western, and Coastal regions.

“This strategic alignment underscores Twiga’s commitment to modernising Kenya’s food distribution landscape,” the company said in a statement. “The combined strengths will enable a digitally powered distribution model that delivers enhanced value to Kenyan retailers and consumers.”

Twiga did not disclose the value of the transactions but emphasized that the acquired distributors would retain leadership roles in the newly consolidated operation. The company also noted it would resume its previously suspended operations in Western Kenya — an area it withdrew from in 2021 following a major business model overhaul.

Founded in 2014, Twiga Foods quickly rose to prominence as one of Africa’s most promising agritech ventures, earning global recognition for its digital approach to streamlining food supply chains between farmers and informal retailers. With backing from investors including Goldman Sachs, IFC, and Creadev, Twiga raised more than $160 million over several funding rounds.

However, its trajectory has been anything but smooth in recent years. In 2023, the company executed sweeping layoffs, slashing its workforce by 40% amid reports of delayed vendor payments and staff salaries. Its founding CEO Peter Njonjo stepped down in early 2024 following a $35 million fundraising round, handing the reins to Charles Ballard, a former Jumia Kenya executive, who vowed to steer the company toward operational stability and profitability.

Despite these leadership changes and strategic realignments, concerns about Twiga’s financial health persist.

Allegations of Concealed Liquidation and Rebirth as “NewCo”

A bombshell report by local tech publication Tech-ish has thrown a shadow over Twiga’s recent moves. Citing internal whistleblower documents and presentation slides, the report claims the company is actively engineering a soft liquidation strategy — restructuring operations under a newly incorporated entity referred to internally as “NewCo.”

The leaked materials describe a detailed plan titled “Project Easter,” allegedly aimed at shutting down the current business structure while transferring key assets, contracts, and a small number of staff into the new company. The restructuring plan, set to take effect by August 2025, purportedly includes:

• Licensing the Twiga brand and customer database to NewCo
• Abandoning its current lease at Tatu City for a more modest location in Syokimau
• Utilizing third-party logistics providers (3PLs) to manage warehousing and supply
• Rehiring only 10–12 employees from the current 435-person workforce

The whistleblower claims the restructuring is designed to allow Twiga to avoid hefty obligations — including commercial leases, employee severance packages, and unpaid vendor bills — while continuing operations under a new corporate identity.

“They’ve fired most of the staff, gutted salaries, and bled the company dry,” the whistleblower wrote in the anonymous letter. “The only remaining anchor is the lease. Their new round of funding is contingent on solving it.”

A Culture in Crisis?

The allegations extend beyond financial engineering. The whistleblower paints a picture of a deeply fractured workplace culture, citing micromanagement, operational inefficiency, and alleged racial bias in hiring practices. According to the letter, senior Kenyan professionals have been marginalized in favor of foreign — mainly French — executives, some of whom allegedly lack the experience or credentials to hold their roles.

“Charles is running a shell held together by underpaid labour and fear,” the whistleblower wrote, adding that despite the company’s strong funding history, “Twiga remains stuck in a manual, outdated grind.”

Tech-ish notes that while it cannot independently verify all claims, many elements of the leaked internal documents align with prior reporting, including Twiga’s funding rounds, layoffs, and structural changes.

Twiga’s recent acquisitions are part of a wider trend in Kenya’s digital commerce and agritech sectors, where companies are diversifying their revenue streams amid tightening capital markets and rising operational costs. However, the method and timing of Twiga’s moves — coupled with the allegations of financial evasion and questionable governance — are raising red flags among stakeholders.

As the company integrates Jumra, Sojpar, and Raisons into its operations, questions remain about the fate of its former employees, the legal implications of its restructuring plans, and the credibility of its new leadership.

Despite Twiga’s stated mission to digitize and democratize food distribution in Africa, the road ahead may depend less on its strategic ambitions and more on whether it can restore trust among staff, suppliers, and investors alike.

Launch Base Africa has reached out to Twiga Foods and its leadership for comment. As of publication, none had responded to requests for clarification.