Kenyan agri-tech firm Twiga Foods has acquired majority stakes in three regional fast-moving consumer goods (FMCG) distributorships for undisclosed value as the firm seeks to diversify its product offering from fresh farm produce.
The three include Nairobi-based Jumra which is a wholesale food and drinks distributorship that also deals in personal and baby care as well as household and cleaning products, and Kisumu-based Sojpar which is a warehouse dealing in food and beverage, stationery, and logistics among others.
Also on the list is Mombasa-based Raisons which distributes items like cosmetics, household items, and stationery. Twiga did not provide detail on the acquisition deals, including value.
Jumra serves the Nairobi and Central regions while Sojpar and Raisons operate in the Western and Coastal regions respectively.
With the acquisitions, Twiga will also ride on the countryside networks of the trio to expand the reach of its core food distributorship business.
“This strategic alignment underscores Twiga’s commitment to modernising Kenya’s food distribution landscape, combining these established distributors’ deep market knowledge, operational excellence, and cost-efficient practices with its advanced technology and analytics,” wrote Twiga in a statement on Wednesday.
“The combined strengths will enable a digitally powered distribution model that delivers enhanced value to Kenyan retailers and consumers.”
Twiga further said that Jumra and Sojpar officials will be tasked with leading operations to ensure sustainability and sustained growth, while the agri-tech firm refocuses its resources on the deployment of supportive technology.
The partnership will see Twiga resume operations in Kenya’s Western region where it had started to make inroads in 2021 before the expansion drive went cold on a business model restructuring that saw a sizeable section of the employee base laid off.
Twiga dramatically exited its founding CEO Peter Njonjo in January last year and in his place appointed Charles Ballard who had earlier served e-commerce platform Jumia Kenya in a similar capacity.
Njonjo’s exit came at a time when the firm was regaining footing from a prolonged chain of operational headwinds, ranging from staff layoffs to deferred payments owed to suppliers, as well as delayed salaries that saw it announce a 40 percent cut on its headcount in 2023.
This came after the company had raised a cumulative $160 million (Sh20.7 billion at current conversion rates) since inception, an amount which had failed to sustain the business at the time.
