Twiga Foods, one of Kenya’s most well-funded e-commerce and agri-distribution startups, has embarked on a sweeping restructuring initiative that includes the formation of a new holding entity—internally dubbed “newco”—and the layoff of more than 300 employees.
This strategic pivot is part of Twiga’s transition to an asset-light operational model following its acquisition of three fast-moving consumer goods (FMCG) distributors in Kenya.
The changes, which Twiga has publicly characterized as a “routine corporate realignment,” suggest a deeper transformation within the company’s internal operations. An internal document reviewed by TechCabal and earlier reported by Techish Kenya—titled Project Easter—outlines the establishment of newco to centralize logistics, procurement, finance, and technology functions across all subsidiaries.
While Twiga has downplayed the significance of the document, describing it as “standard planning work for a multi-entity business,” insiders view the move as a signal of a company shifting direction to cut operational costs, consolidate services, and improve investor appeal.
The restructuring plan, according to internal sources, involves transferring a select central team of about 10–12 employees to newco, with shared services likely to be coordinated from there. The move is designed to reduce duplication across business units and improve organizational efficiency. It also coincides with Twiga’s review of its physical infrastructure, including a potential relocation from its expansive logistics hub in Tatu City to more cost-effective, centralized sites near Nairobi.
Out of Twiga’s 435 employees, at least 319 were listed as “leaving,” with the supply chain department bearing the brunt of the layoffs—267 positions were cut. Just 83 office and distribution centre workers and 33 field staff were retained. A small group of 18 employees marked for transfer to Jump—believed to be a codename for newco—may be reduced to just a dozen as the company finalizes the structure of its streamlined team.
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Although Twiga declined to comment on the precise number of staff laid off, it did not deny the ongoing restructuring. In an emailed response, the company stated, “All workforce-related adjustments have been carried out in full compliance with our HR policies and Kenyan labour laws, and are equally guided by best-practice standards.”
This is not Twiga’s first round of layoffs. In August 2024, the company let go of 59 employees amid rising operational costs and slow growth in its core markets. With this larger round of job cuts, Twiga is doubling down on a new business model aimed at long-term sustainability.
Twiga also declined to confirm whether newco had been formally registered or reveal the financial structure of any new capital injected into the company by major backers like Juven and Creadev. Investors and analysts speculate that the holding company framework may allow for better fundraising, as it simplifies corporate governance and provides clearer value segmentation for each business unit.
The startup’s most recent significant funding was a $35 million convertible note in 2023. Since then, rising operating expenses, integration challenges, and a highly fragmented food supply chain have pressured the firm to revise its strategy. By shifting from a heavy logistics model to an asset-light one, Twiga hopes to become more agile and less capital-intensive.
Founded in 2014, Twiga began as a mobile-based supply platform connecting farmers to vendors, aiming to eliminate inefficiencies in the food distribution ecosystem. Its mission—to digitize and formalize agricultural supply chains in East Africa—earned it global recognition and investor backing. But the complexities of scaling in fragmented markets have forced the company to rethink its model.
“This restructuring is about realigning our strategy to deliver long-term value while maintaining service continuity across our markets,” a Twiga spokesperson told TechCabal.
As Kenya’s tech ecosystem continues to mature, Twiga’s shift could serve as a cautionary tale and a case study in corporate adaptation. While the layoffs are painful, the company appears committed to positioning itself for profitability and operational clarity in a competitive market increasingly wary of unsustainable growth narratives.
