Twiga Foods, a leading Kenyan agri-tech and food distribution company, announced a two-month suspension of its Nairobi operations, effective immediately, to complete the final phase of a business transformation strategy.
The suspension follows extensive internal restructuring, acquisitions, and layoffs, enabling Twiga to relocate its distribution hub from Tatu City to a facility closer to Nairobi for enhanced strategic positioning.
Twiga stated, “This workforce adjustment process is being conducted transparently, respectfully, and in strict compliance with Kenyan labour laws and internal company policies.” The company affirmed its commitment, saying, “Twiga Foods is committed to supporting all affected employees during this period.”
The reorganisation primarily affects supply chain roles, with over 300 reported job cuts as Twiga shifts to an asset-light model emphasising technology and third-party partnerships.
An internal memo revealed that a small core team will transition to a new holding entity, referred to as “newco,” which will centralise logistics, procurement, technology, and finance for Twiga and its subsidiaries. Most supply chain roles have been deemed redundant to enhance operational efficiency.
The company explained:
“These strategic decisions, taken with careful consideration, are necessary to build a stronger, more resilient organisation that is well-equipped to scale and meet the demands of Kenya’s dynamic market.”
It further noted, “The measures announced represent the final steps in Twiga’s journey to transform its business model, ensuring financial sustainability, competitiveness, and the ability to lastingly serve Kenya’s retail ecosystem.”
Despite securing over $180 million in funding, Twiga’s prior capital-intensive model proved unsustainable, with sources citing mismanagement in logistics and supply chain operations as primary challenges.
The company now focuses on centralising operations, leveraging technology, and outsourcing logistics to improve efficiency while continuing to serve small retailers across Kenya.
