Twiga Foods has suspended its operations in Nairobi for 60 days in a development that points out deeper problems within one of Kenya’s most highly funded tech startups.
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.
