Twiga Foods’ founder and longstanding CEO, Peter Njonjo, has resigned from the company’s board a month after his dramatic departure as chief executive, concluding a decade-long tenure at the forefront of one of Kenya’s prominent agritech firms.
This development unfolds against the backdrop of Twiga navigating a series of operational challenges, including staff layoffs, deferred payments to suppliers, and delayed salaries for workers, prompting the company to announce a substantial 40 percent reduction in its workforce last year.
The announcement of Mr. Njonjo’s departure was initially made public on December 14, coinciding with the revelation that the longstanding CEO had taken a six-month leave immediately after successfully overseeing the closure of a new funding round, estimated at $35 million. This funding added to the cumulative capital of $160 million raised since the company’s inception.
Foreign shareholders Creadev and Juven, who played a pivotal role in the recent funding round, have taken up the operational reins of Twiga Foods. Their infusion of $35 million assisted Twiga in settling debts with vendors, marking a critical milestone in the company’s financial stability.
Njonjo’s tenure as CEO saw Twiga Foods attract over $100 million in funding from prominent investors, including Goldman Sachs, IFC, TLcom Capital, and Creadev. The company expanded its operations to 12 cities in Kenya and entered the Ugandan market in 2023.
Despite these successes, Twiga Foods has faced financial challenges, leading to employee layoffs, deferred payments to suppliers, and delayed salaries for workers. Last year, the company implemented a significant 40 percent reduction in its workforce to navigate these difficulties.
Njonjo, in his resignation letter, acknowledged the necessity of a leadership transition during a challenging period for Twiga. He agreed to a six-month transition at the board’s request, allowing them ample time to recruit a new CEO.
Expressing pride in Twiga’s achievements under his leadership, Njonjo stated, “Twiga Foods has grown from a small start-up to a leading B2B e-commerce platform in Africa, providing affordable access to high-quality foods, products, and retail services to millions of consumers.”
In a statement to Business Daily, Njonjo expressed confidence in the current board and management team, emphasizing his commitment as a supportive shareholder. Having invested $1 million in the recent funding round led by Juven and Creadev, he remains deeply interested in the company’s success.
“I founded the company, so I will always have a strong interest in the success of the business,” Njonjo affirmed. With Twiga in a robust position post-funding and institutional capability, he now looks forward to exploring new opportunities that will command his attention in the short to medium term. Twiga Foods, under new leadership, is poised to navigate the future terrain of Africa’s agri-tech landscape.
