Per TechCabal, the company says it’s relocating its central distribution hub, but the decision goes beyond a change of address, showing a sign of high internal issues, shrinking investor patience, and a model that’s struggling to survive Kenya’s retail market.

The firm confirmed the pause is part of “the final stage” in its current restructuring and will see it move from its Tatu City base in Kiambu County to a location closer to the city, potentially in Baba Dogo, Mombasa Road, or Syokimau. 

But looking deeper, this change exposes a company still wrestling with the consequences of earlier decisions that bloated its cost structure and delayed critical changes to its business model.

Twiga’s original vision was solid, owning the entire farm-to-retail supply chain, from working directly with farmers to handling warehousing and delivery. It believed full control would eventually reduce costs and deliver efficiency. Instead, the approach drained resources. One former employee said, “We were burning money trying to do everything—farming, warehousing, and deliveries.”

Now the firm is trying to correct course. After raising more than $180 million in funding over multiple rounds, including a $35 million convertible note in 2023, Twiga is under pressure to show results. 

In May, it laid off over 300 workers, most of them in supply chain roles. This followed earlier acquisitions of local distributors Jumra, Sojpar, and Raisons as part of an initiative to widen its network without building more infrastructure.

Twiga’s plan now leans heavily on centralisation and technology. The company says its aim is to streamline operations using data and a lighter physical footprint. 

“The internal reorganisation impacts a certain number of roles, mainly within supply chain functions,” it stated, indirectly confirming the existence of a leaked document, codenamed Project Easter, which outlined staff cuts.

What has become obvious is that Twiga’s leadership waited too long to pivot. Insiders suggest the company stuck with its asset-heavy model well past the point of viability. 

Two former employees told TechCabal that internal resistance to change persisted into 2025. One person familiar with the situation noted, “The supply chain department was mismanaged and cost Twiga a lot of money.”

Twiga Foods still operates eight distribution centres across Central, Coast, and Western Kenya. But in Nairobi, further infrastructure expansion has been shelved.

Instead, the company plans to lean on third-party partners to handle parts of its logistics, and this could contrast with its original plan of building a vertically integrated supply chain.

In cutting jobs and consolidating its operations, Twiga is trying to steady the business, but there are still high risks. Any profit from tech-enabled logistics or data optimisation will take time to materialise, and with investor trust wearing thin, the company has little room for further missteps.

Twiga says the current pause will give it time to stabilise and realign.

Reports disclose that the company plans to let go of 59 employees in a bid to restructure operations. This layoff comes only a year after the company let go of 283 workers, which represented a 33% reduction of its workforce at that time, August 2023.

The announcement of these layoffs has led to discussions on social media, with many pointing to underlying leadership and operational challenges that have affected the company for some time. 

Users argue that despite a change in leadership and the injection of additional capital, Twiga Foods has struggled to achieve sustainable growth. The layoffs are seen as a symptom of deeper issues within the company’s structure and strategy.

Twiga Foods attributed the previous layoffs to the need for a leaner, more agile, and cost-effective organisation in response to a changing macroeconomic environment. 

Peter Njonjo, co-founder and former CEO, had previously noted that the cost of capital for venture-backed startups had risen significantly over the past two years. This increase, both locally and globally, has put pressure on companies like Twiga Foods to reassess their business models to remain competitive. 

Njonjo emphasised that companies failing to adapt to these new economic realities risk being left behind.

Last year, Twiga Foods also made several adjustments to its operations. The company closed 10 distribution sites in Nairobi and consolidated its activities into a modern 200,000-square-foot warehouse, which was officially opened the previous year.

Twiga’s challenges have been compounded by legal and financial difficulties. In early 2024, the company was embroiled in a legal dispute with cloud provider Incentro over an unpaid $261,000 bill, pointing to its cash flow issues. 

Added to this, founder Peter Njonjo’s departure in March 2024, following the company’s latest funding round, has led to talks about the company’s direction and leadership.

Charles Ballard, an ex-Jumia executive who took over as CEO in May 2024, has stated that the recent adjustments, including the layoffs, are essential for Twiga to refine its service offerings and build a stronger foundation for long-term growth.

Twiga Foods is still active in the market and well-focused on its mission to boost food distribution in Africa through digital innovation. The company also plans to create 25 new roles in its growth and innovation departments.

Charles Ballard, a brilliant figure in the e-commerce sector, brings a wealth of experience in retail, and financial services to his new role.

He joins Twiga Foods from Jumia Kenya, where he most recently served as CEO, with extensive experience in the organization. He held leadership positions such as Senior Vice President-Commercial, Chief Operating Officer, and Head of Performance & Planning.

Before joining Jumia, Charles worked as a consultant at Sagaci Research, contributing to retail and e-commerce projects across more than 15 African countries. 

He also served as Deputy CFO at ACTED, a humanitarian NGO operating in 40 developing countries worldwide. Charles began his career in Merger & Acquisitions, gaining valuable experience in Paris and Hong Kong.

Interestingly, he holds a Master’s degree from the ESSEC Business School in France and also earned a BSc in International Development from the London School of Economics (UoL/LSE) in the UK.

With Charles Ballard joining Twiga Foods, the company aims for continued growth and innovation in the food distribution industry. His diverse background and apt vision make him a highly valuable addition to the company’s leadership team.

Ballard’s appointment comes at a time when Twiga Foods targets bolstering Kenya’s agricultural sector. His expertise in e-commerce and his deep understanding of African markets will be leveraged in driving the company’s future success.

Peter Njonjo, who founded Twiga Foods in 2013 and led the company until December 2023, played an important in guiding the growth of the agritech firm. However, his abrupt exit from the board points to a change in the company’s leadership dynamics.

According to a letter addressed to Twiga Holdings board chairman Hein Pretorius, dated January 4, 2024, Njonjo expressed his belief that he could contribute “very little value” to the company’s current transition. This stance has fueled speculations about potential disagreements or conflicts within the boardroom, especially concerning the strategic direction and daily operations, now firmly in the hands of major investors, Juven and Creadev.

Twiga, a well-known household items wholesaler and food distributor in Nairobi, recently faced operational challenges, including staff layoffs, deferred payments to suppliers, and delayed salaries, leading to a 40 percent cut in its workforce. These challenges, combined with the aftermath of a $35 million funding round, in which Juven and Creadev participated, raised concerns about the company’s stability.

Njonjo’s resignation raises questions about the true nature of his departure, challenging the situation presented during his initial announcement. Reports suggest Njonjo had initially agreed to a six-month transition period at the board’s request after his resignation as CEO. However, the terse resignation letter suggests a more complex situation.

In response to inquiries, Njonjo dismissed claims of a boardroom coup and emphasised his continued commitment as a shareholder. He mentioned having faith in the current board and management team, stating, “I would want to play the role of a supportive shareholder.”

Despite the challenges, Njonjo reflected on Twiga’s achievements during his ten-year tenure, highlighting the company’s impact on food security locally and globally. He also outlined his strategic contributions, including a recent funding round in November 2023, where he became the third-largest investor after Creadev and Juven.

Njonjo’s decision to step back from the board and focus on other opportunities has left Twiga at a critical juncture. As the company scales this transition period, stakeholders anticipate seeing how the new leadership, dominated by foreign shareholders, will guide Twiga in its pursuit of sustained growth and success.

The headline session will feature a fireside conversation with Julia Collins, who will share valuable insights on her experience as a successful serial tech entrepreneur. The event is expected to be the largest gathering of women in tech in Africa.

With the current global macroeconomic environment in mind, the theme for the 2023 Africa Tech Female Founder Summit is Building Resilience: Adapting to New Realities, which addresses head on the challenges African founders and operators are currently facing, as well as providing timely and practical advice and support from experienced global and African business leaders.

Julia Collins, the first black woman to build a unicorn, will give this year’s keynote, as well as host a masterclass session on Getting to Product Market Fit.

Julia is now building Planet FWD, a leading decarbonization platform for consumer companies.

She will be joined on the day by Cikü Mugambi [Kobo360], Enas Siam [FlexStock], and Thomas Njeru [Pula], who will hold a panel on “When the going gets tough”, whilst Tokunbo Ishmael [Alithea Capital] will discuss the Importance of Investing in Women.

In addition, this year, the Africa Tech Female Founder Summit will host a number of masterclasses held by TLcom Partners such as Eloho Omame, as well as a special focus on Building and leveraging Networks by leading Executive Visibility expert Glory Edozien.

Having hosted the summit with 150+ African female founders and operators in Nairobi in 2022, this year sees the event move west to Lagos, Nigeria.

Applications to attend the event are now open.  

Speaking on the upcoming event, Omobola Johnson, Senior Partner at TLcom Capital, says,

“2023 has been a challenging year for founders across the continent, so this year we will be gathering our community of women in tech in Africa to share experiences, learn from experts in their fields and develop coping tactics that will help build resilient businesses to weather this current climate. We want to discuss in depth what resilience means and how it can be infused into businesses, their leaders, and their teams.” 

Andreata Muforo, Partner at TLcom Capital, adds,

“At this year’s Africa Tech Female Founder Summit, we will not only be discussing business survival but also business growth; there are opportunities for founders, even during more turbulent economic times. We’re excited to be hosting the continent’s largest gathering of women in tech, bringing some truly experienced and inspiring speakers to the table. We want all attendees to leave with not only a vision and renewed sense of community support but also with actionable insights that will benefit their businesses”.  

TLcom’s TIDE Africa Fund II, which is one of the most active funds across Africa, boasts a leadership team which is 60% female.

The firm has actively supported female founders not only through its annual summit but notably through its track record of investing in some of Africa’s top female-led startups, such as Okra and Pula. In 2022, TLcom also doubled down on its drive to address the severe funding gap for Africa’s female tech entrepreneurs with a co-investment commitment to support the launch of FirstCheck Africa’s debut fund.

Currently, TLcom manages total commitments of approximately $350mn and holds several African startups in its portfolio, including Andela, Ajua, Autochek, Ilara Health, Kobo360, Okra, Pastel, Pula, Seamless HR, Shara, Terragon Group, Twiga Foods, uLesson and Vendease.

With an on-the-ground presence in Kenya and Nigeria as well as offices in the UK, the firm invests across all stages of the venture capital cycle with a focus on Seed and Series A.

TLcom also invests across a wide range of industries, including agriculture, education, fintech, data analytics and logistics, targeting high-growth, tech-enabled startups across Africa.

Today, it is the first car-sharing marketplace in Nigeria, Ghana, Kenya, and Uganda created to serve more than 26 million vehicle owners in Africa.

Since 2019, Treepz has moved over 2.5m passengers with its bus-hailing platform across Nigeria, Ghana, Uganda and Kenya.

With the launching of its car-sharing marketplace in Africa, starting today May 3, 2023, Treepz innovative platform allows car owners to rent out their vehicles for short to long-term periods, providing a more affordable and sustainable option for mobility in Africa.

This is a huge relief for over 600 million Africans living in urban areas and less than 44 cars per 1,000 people, who have the demand for affordable transportation options.

Treepz’s car-sharing platform addresses this need by allowing people to rent a car only when they need it and for flexible rental periods.

This helps reduce traffic congestion and carbon emissions, leading to a more sustainable transportation system.

The car-sharing market in Africa is expected to grow at an annual rate of 20% from 2020 to 2030, with a projected market value of $500 million.

Treepz, as Africa’s largest car-sharing marketplace by market size of their operations, is well-positioned to take advantage of this growth and provide an affordable and sustainable transportation option for people across the continent.

The marketplace is available on iOS and Android and offers a variety of vehicles, including sedans, SUVs, vans, and buses. Renters can search for vehicles by inputting their location and duration and choose from a list of several car owners, makes, and models.

Car owners can set their prices, availability, and long-term booking discounts, among other functionalities.

Notable businesses such as Wakanow and Tekexperts in Nigeria, Twiga Foods and Diamond Trust Bank in Kenya and many more organizations in Africa have already been using the Treepz solution for their staff, but now, Treepz is rolling out the consumer side of the service to make access to vehicles for rent easier.

Treepz is backed by notable investors such as Google, SOSV, Goodwater Capital, Techstars and GIIG Africa Fund, among others, which adds credibility to the company and its new marketplace.

Commenting on the development, Onyeka Akumah, Treepz’s CEO, said:

“The new Treepz is an exciting innovation for transportation in Africa. We are making better use of more than 26 million vehicles available on the continent to provide commuters with enjoyable and fun transportation service as they travel for work or simply enjoy a smooth ride across the safaris in the continent. Today we are regarded as the largest car-sharing marketplace in Africa and we have seized that opportunity with the technology we’ve built for hosts (vehicle owners or rental companies) to manage their inventory, reach new customers and track their growth. While guests who book from these host have the luxury to select their dream car for work, pleasure or exploration with a vetted driver. 

“We have spent the last 5 months building this solution and we are excited to introduce you to this in Nigeria, Ghana, Uganda and Kenya. Treepz is at the forefront of this important movement with guest and host enjoying their commute on the continent. Our goal to listen to our customers and keep making them happy with every trip they make with us at Treepz.”

While Euromonitor International revealed that retail sales in Africa was $500 billion+ in 2018, African Development Bank projected that the industry would reach $1.3 trillion by 2020, and McKinsey & Company projected growth of $860 billion in 2015 to $1.4 trillion by 2025. This represents a compound annual growth rate (CAGR) of 5.8%. With the continent’s growing population and rising middle class, this sector is expected to continue expanding.

The retail industry in Africa is diverse and comprises both formal and informal retail. Informal retail makes up a significant proportion of the sector and includes markets, street vendors, and kiosks. Formal retail, on the other hand, includes shopping malls, supermarkets, and department stores.

The growth of the retail industry in Africa is driven by several factors, including population growth, urbanization, rising disposable incomes, and increasing consumer spending. The continent has a young and growing population, with a median age of just 19.7 years, which creates a large and growing consumer base. The pace of urbanization is also accelerating, with more Africans moving to cities and creating new markets for retailers.

Another key driver of growth in the African retail industry is the increasing availability and affordability of technology. Mobile phone penetration rates are high in many African countries, which has enabled the growth of e-commerce platforms and mobile money solutions. These technologies are making it easier and more convenient for consumers to shop online and pay for goods and services.

Successful retail African startups:

1. Jumia

Jumia is a leading e-commerce platform in Africa. It was founded in 2012 and is now present in 11 African countries. Jumia’s success can be attributed to its ability to adapt to the unique challenges of the African market. The platform offers a range of products, including electronics, fashion, and beauty, and has developed its payment and logistics infrastructure to overcome the challenges of delivering products in Africa.

2. Kobo360

Kobo360 is a logistics platform that connects truck owners and drivers with businesses that need to move goods. The platform uses technology to optimize the logistics process and improve efficiency. Kobo360 has been successful because it solves a significant problem in the African market, where logistics is often unreliable and inefficient.

3. Sokowatch

Sokowatch is a B2B e-commerce platform that enables small retailers in Africa to order products directly from manufacturers and distributors. The platform uses mobile technology to enable retailers to place orders and receive deliveries quickly and efficiently. Sokowatch has disrupted the traditional retail model by cutting out middlemen and reducing costs for retailers.

4. Farmcrowdy

Farmcrowdy is an agricultural platform that connects small-scale farmers in Nigeria with investors who provide funding for farming projects. The platform enables farmers to access capital, expertise, and resources, and investors to earn returns on their investments. Farmcrowdy has disrupted the traditional agricultural model by using technology to connect farmers with investors and increase efficiency.

5. Twiga Foods

Twiga Foods is a B2B platform that connects smallholder farmers in Kenya with urban retailers. The platform uses mobile technology to enable farmers to sell their produce directly to retailers, cutting out middlemen and reducing costs. Twiga Foods has disrupted the traditional supply chain by making it more efficient and profitable for farmers and retailers.

6. Alerzo

Alerzo is a retail Nigerian startup that aims to make shopping for everyday items more convenient and affordable for consumers in Africa. The company operates an online marketplace that offers a wide range of products, including groceries, health and beauty items, electronics, and more.

Alerzo leverages technology to streamline the shopping experience and reduce costs, which enables them to offer lower prices than traditional brick-and-mortar stores. The company also partners with local businesses to expand its product offerings and support the growth of small businesses in the region.

Despite the growth potential, the African retail industry still faces some challenges, such as poor infrastructure, logistical challenges, and a lack of formal retail space. However, innovative startups are emerging and using technology, e-commerce platforms, and logistics solutions to make retail more efficient and accessible in Africa.