Agritech startup Twiga Foods has announced plans to lay off some of its workforce as it halts operations in Nairobi for two months, less than two years after carrying out a similar move in August 2023.
The company announced on Thursday May 29 that it will suspend its Nairobi activities for 60 days, aiming to establish a new distribution centre that it says will be located in a more strategic area.
The pause will allow the Business-to-Business (B2B) eCommerce platform to restructure its operations following its recent acquisition of majority stakes in three regional FMCG distributorships, part of a plan to broaden its product range beyond fresh produce.
“The reorganisation impacts a certain number of roles, mainly within supply chain functions. This workforce adjustment process is being conducted transparently, respectfully, and in strict compliance with Kenyan labour laws and internal company policies,” said the firm in a statement.
“Twiga Foods remains committed to supporting all employees affected during this period.”
However, Twiga did not reveal how many employees will be affected or where the new distribution centre will be located.
Regarding payments owed to suppliers, the company stated that it is “actively working with its customers, suppliers, and business partners to ensure a seamless transition and minimise disruptions.”
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Since 2023, Twiga has faced challenges, including the layoff of over 250 employees, which surprised many in the sector given the company’s impressive fundraising track record—having raised over Ksh23.2 billion—and the government support it received, such as President William Ruto’s 2022 announcement that Twiga would secure a Ksh300 million loan from the Hustler Fund to support suppliers.
Twiga Holdings Limited’s subsidiary acquires 3 companies after CAK approval
The new developments come after the Competition Authority of Kenya (CAK) approved the proposed acquisition of direct control of Jumra Limited, Sojpar Limited, and Raisons Distributors Limited by Twiga Holdings Limited’s subsidiary Kimo Kali Holdings Limited.
Twiga Holdings is the parent company of Twiga Foods and specializes in the wholesale distribution of fast-moving consumer goods (FMCG), leveraging technology, mobile phones, and efficient logistics.
Also Read: CAK Approves Acquisition of Two Kenyan Companies by French Firm Eurazeo
CAK in a notice dated May 27, 2025, disclosed that the proposed transaction involves the acquisition of shares in Jumra, Sojpar, and Raisons by Kimo Kali.
The transaction is expected to enable Kimo Kali to streamline its supply chains, reduce logistics costs, improve delivery times, and broaden access to previously underserved regions and customer segments.
“The transaction will enable Kimo Kali to establish more efficient supply chains, lowering logistics costs, enhancing delivery times, and expanding access to previously underserved regions or customer segments,” part of the statement read.
Jumra Limited operates in the business-to-business wholesale distribution of Fast-Moving Consumer Goods (FMCGs) within Nairobi County, dealing in products such as food and beverages, personal hygiene items, beauty and cosmetic products, household cleaning supplies, and stationery.
On its part, Raisons Distributors Limited is involved in the B2B wholesale distribution of FMCG products including food and beverages, personal care and hygiene, beauty and cosmetics; household cleaning and care, and stationery in Kwale, Mombasa, Kilifi, and Taita-Taveta counties.
Sojpar Limited on the other hand is involved in business-to-business wholesale distribution of FMCG products including food and beverages, personal care and hygiene, beauty and cosmetics, household cleaning and care, and stationery within Siaya, Kisumu, Vihiga, Kakamega and Busia counties.
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