Twiga Foods, the prominent Kenyan agri-tech and food distribution company, has temporarily paused its Nairobi operations as a final phase in its ongoing business transformation strategy. Established in 2014, Twiga has positioned itself as a vital player in modernising agricultural supply chains in Kenya, utilising its digital platform to directly connect farmers with retailers. This innovative approach aims to reduce intermediaries and lower post-harvest losses, thereby improving market access for farmers and ensuring retailers consistently receive affordable fresh produce.

The company’s decision to halt its Nairobi operations is part of a broader plan to create a more strategic distribution centre, with a goal to resume full operations by August. Twiga's temporary suspension comes at a time when the company is also undergoing significant internal restructuring, including notable workforce adjustments affecting its supply chain department. Speaking on the matter, Twiga expressed its commitment to conducting the restructuring "transparently, respectfully, and in strict compliance with Kenyan labour laws". The company has pledged to support those who are impacted during this transition.

As part of its reorganisation efforts, the firm is aiming to align its operational model with the evolving market landscape. The restructuring will enhance its core capabilities in technology, business intelligence, and digital solutions, which according to Twiga, are critical to effectively meet the needs of its customers and partners. The firm contends that these strategic decisions are essential to build a more robust organisation capable of scaling effectively within Kenya's dynamic market.

In parallel with the operational pause, Twiga recently announced significant expansions to its procurement capabilities by partnering with three food distribution companies—Jumra, Sojpar, and Raisons. This strategy seeks to improve Twiga’s reach in Nairobi and other regions by leveraging the distributors' networks alongside Twiga's technology. These partnerships are expected to enhance operational efficiencies and accelerate the company's growth, positioning it as a preferred partner for both local and international fast-moving consumer goods (FMCG) brands.

However, the backdrop of this strategy has not been without controversy. Following the acquisition of the three distributors, allegations have surfaced suggesting that the restructuring might be a tactic to avoid financial responsibilities, including unpaid vendor bills and commercial leases. Twiga has not publicly responded to these allegations, which raise questions regarding transparency and employee welfare during this transition. The company’s internal restructuring follows a series of layoffs earlier this year, which reportedly saw 59 employees dismissed as Twiga seeks to enhance operational efficiency while navigating tough market conditions.

Despite the challenges posed by such restructuring, Twiga Foods remains optimistic about its mission to revolutionise food distribution across Africa. CEO Peter Njonjo has emphasised the company’s commitment to innovation amid these changes, highlighting ongoing efforts to stimulate business growth, particularly in light of the evolving market demands.

In sum, while Twiga Foods is undergoing significant transformations aimed at solidifying its market position and operational efficiencies, the implications of these changes—both for employees and the overall business landscape—remain to be fully realised.

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Source: Noah Wire Services