Twiga Foods Suspend Nairobi Operations in Bid to Revamp Distribution Strategy

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Twiga Foods, one of Kenya’s most funded e-commerce startups, has announced a temporary two-month suspension of its Nairobi operations as part of a major business overhaul.

The company is shifting its focus towards a leaner, more data-driven distribution strategy, following months of internal restructuring, acquisitions, and layoffs aimed at cutting costs.

This move is the latest indication of pressure from investors and market realities forcing Twiga to recalibrate its once capital-intensive supply chain model.

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The operational break will enable Twiga to relocate from its current distribution hub at Tatu City in Kiambu County to a more strategically located facility closer to Nairobi, with potential new locations including Baba Dogo, Mombasa Road, and Syokimau.

After acquiring local distributors Jumra, Sojpar, and Raisons, Twiga now manages eight distribution centers across Central, Coast, and Western Kenya, but is avoiding further infrastructure investment in the capital.

This strategic shift signals a move toward an asset-light approach, focused on centralizing operations and leveraging technology to optimize inventory, cut transportation costs, and better serve small retailers.

Despite raising over $180 million in funding, Twiga’s business model has struggled to prove scalable in the Kenyan market, with former employees attributing this to the company’s slow transition from a capital-heavy approach to an asset-light strategy.

The repeated layoffs and restructuring efforts have exposed tension between Twiga’s promises and its current reality, raising questions about the company’s ability to achieve its vision of building a stronger, tech-powered distribution system.

Twiga’s last major funding round was a $35 million convertible note in 2023, and insiders say investors have been pushing for tighter discipline on costs and operations.

With this pause, Twiga hopes to consolidate its infrastructure and enhance its tech capabilities to regain stability and remain relevant in Kenya’s retail market.