Kenyan agri-tech giant Twiga Foods is undergoing a major transformation as it acquires majority stakes in three local fast-moving consumer goods (FMCG) companies, marking a significant pivot from its original model as a fresh produce supplier to a comprehensive FMCG platform.
Founded in 2014, Twiga Foods has long been a key player in Kenya’s agricultural distribution sector.
The company operates a B2B e-commerce system designed to streamline the supply chain between agricultural producers, FMCG manufacturers, and retailers. By eliminating multiple layers of intermediaries, Twiga has significantly reduced food costs for Kenyan consumers while offering greater market transparency and efficiency.
However, the journey has not been without challenges. After raising a $50 million Series C round in 2021 and securing an additional $35 million in late 2023, Twiga has struggled in the wake of a global capital crunch. The company was forced to cut its workforce by 40 percent in 2023 and faced allegations regarding delayed payments to vendors and staff. In the midst of these difficulties, founding CEO Peter Njonjo stepped down, with Charles Ballard, a former executive at Jumia Kenya, taking the helm.
As part of its strategic shift, Twiga Foods recently acquired three prominent local FMCG distributors: Jumra, Sojpar, and Raisons. These acquisitions aim to boost Twiga’s procurement capabilities and deepen its market penetration across Kenya’s Central, Western, and Coastal regions
“This strategic alignment underscores Twiga’s commitment to modernising Kenya’s food distribution landscape. The combined strengths will enable a digitally powered distribution model that delivers enhanced value to Kenyan retailers and consumers,” Twiga said in an official statement.
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By merging its technology-driven operations with the logistical strengths of the newly acquired companies, Twiga plans to create a robust platform capable of serving a broader range of consumer needs beyond fresh produce.
Twiga’s pivot reflects a broader trend in Africa’s startup ecosystem, where companies are adapting to economic headwinds by diversifying services and strengthening operational resilience. Industry observers note that Twiga’s move to broaden its FMCG footprint could not only stabilize the company financially but also redefine its role in Kenya’s retail and distribution sectors.
As Twiga embarks on this new phase, the company will need to balance growth ambitions with the operational realities of a rapidly evolving market. Success will depend on effective integration of the acquired firms and the continued expansion of its digital-first distribution model.
