The Kenyan e-commerce enterprise Twiga Foods, which found itself entangled in legal disputes with a cloud service provider earlier in 2024, has announced plans to downsize its workforce by 59 employees as part of a company-wide restructuring effort. This decision marks the second instance of significant job reductions at Twiga, following the dismissal of 283 staff members in August 2023.
In a public statement, Twiga Foods articulated the necessity of these layoffs, emphasizing their importance in propelling the company towards a profitable future while maintaining its commitment to transforming the African food distribution sector with cutting-edge digital platforms.
Concurrently, Twiga Foods is set to create 25 new positions within its departments focused on growth and innovation, signaling a strategic shift and investment in these key areas.
The year 2024 has been particularly eventful for Twiga Foods, highlighted by a legal confrontation with Incentro, a cloud service provider, over an unsettled bill amounting to $261,000. This legal issue shed light on the startup’s financial difficulties, revealing challenges in managing payments to vendors and compensating its workforce.
In March, amidst these challenges and following the acquisition of fresh capital, Twiga Foods saw the departure of its founder and CEO, Peter Njonjo. This event sparked rumors about the circumstances of his exit from the company.
Subsequently, in May 2024, Charles Ballard, who previously held a position at Jumia, stepped in to fill the CEO role vacated by Njonjo. Ballard expressed confidence in the strategic realignment, asserting that these changes are instrumental in enhancing Twiga Foods’ service offerings and establishing a robust foundation for long-term, sustainable expansion.
In a fundraising effort in November 2023, Twiga Foods successfully secured $35 million through convertible bonds, attracting investments from both new and returning backers, including Creadev and Juven. Notably, Njonjo personally contributed $1 million to this investment round.
