Twiga Foods and Incentro Africa have resolved the Ksh.39 million google cloud service dispute that was set to be heard on March 13, 2024.
In a statement seen by The Kenya Times, the two companies announced a renewed and strengthened partnership.
“I would like to commend the exceptional work of Twiga’s Chief Financial Officer, Zuber Momoniat. His commitment and decisiveness have been instrumental in resolving the dispute and rekindling our partnership.
This collaboration marks a significant step towards a stronger and more productive relationship between Twiga and Incentro Africa,” said Dennis de Weerd, CEO of Incentro.
The CEO explained that the dispute placed both the two companies in challenging situations.
He emphasized that Twiga and Incentro will recommit their partnership for mutual satisfaction.
“However, we are pleased to announce that these issues have been resolved to our mutual satisfaction and are excited to recommit to our partnership. We look forward to continuing to collaborate in providing innovative and cost-effective cloud services to Twiga Foods,” added Weerd.
Court Demands
The breakthrough came on the back of a court demand in September 2023 on Twiga Foods by Incentro Africa over sums relating to Google Cloud Services provided by Incentro.
Twiga Foods had disputed the figure and filed an application in court to set aside the statutory demand.
“In light of the settlement arrived at between Twiga Foods and Incentro Africa, and the renewed commitment from both parties, Incentro Africa has agreed to withdraw the statutory demand filed in September 2023. This step is a testament to our restored faith,” said Twiga’s CFO, Zuber Momoniat.
Also Read: Peter Njonjo Resigns as Twiga Foods CEO After 10 Years
The resolution, led by Twiga’s new management team followed negotiations between Twiga Foods and Incentro Africa following the management changes announced in the last quarter of 2023.
Also, this follows the significant recent investment, led by Creadev and Juven, into Twiga in December 2023.
Momoniat said both Twiga Foods and Incentro Africa recognized the need to renegotiate the terms of the Google Cloud contract in light of the current global economic climate.
“Both parties acknowledge that a renegotiation with Google Cloud is essential to align with the current business environment,” he concluded.
In addition, Twiga and Incentro Africa believe the renewed collaboration will be a significant step towards resolving past challenges and a strong foundation for future growth and success.
Also Read: More Woes for Twiga Foods After Mass Sacking of Employees
Twiga Foods Debt
In December 2023, the court gave the two companies five months to resolve their dispute over how much Twiga owes Incentro.
This was after the two parties were given two months to resolve the matter in September, but they missed the deadline.
Furthermore, Incentro claimed Twiga owes it $450,000 (Ksh.72,000,000) in unpaid bills and a delayed bonus from Google, but Twiga said it only owed $94,000 (Ksh.15,040,000).
According to Incentro this amount included $92,000 (Ksh.14,720,000) which it was supposed to receive from google for additional services offered to large customers.
The $3 million (Kshs.480 million) contract at the heart of the dispute committed Twiga to using Google Cloud Services over three years through Incentro, a Google Cloud reseller.