Food company Twiga Foods purchases three distributors under suspicion of implementing a "soft liquidation" strategy
In the world of African tech and agri-tech, Twiga Foods has been making headlines for all the wrong reasons. The company, which has raised over $160 million from investors including Goldman Sachs, IFC, and Creadev, is currently facing a storm of controversy.
A whistleblower has come forward with claims that CEO Charles Ballard is running the company with underpaid labor and fear. The method and timing of Twiga's moves, coupled with allegations of financial evasion and questionable governance, are raising red flags among stakeholders.
Despite these allegations, there is no direct evidence of Twiga Foods' current financial health or any restructuring plans related to a soft liquidation strategy as of mid-2025. However, the company has shifted towards a more asset-light model in 2025, which may indicate efforts to improve operational efficiency and reduce capital intensity.
Twiga Foods remains active in Africa's agri-tech sector, leveraging digital platforms and AI-driven supply chains to boost food security and connect farmers directly to retailers, reducing intermediaries and waste. The broader African tech and agri-tech environment in H1 2025 shows signs of stabilizing operations, with fewer layoffs and startup shutdowns compared to previous years.
However, concerns about Twiga's financial health persist. A recent report by Tech-ish claims the company is actively engineering a soft liquidation strategy. The restructuring plan, set to take effect by August 2025, reportedly includes licensing the Twiga brand and customer database to a newly incorporated entity, using third-party logistics providers, and rehiring only a small fraction of the current workforce.
The acquisitions of local distributors Jumra, Sojpar, and Raisons are expected to bolster Twiga's procurement capabilities and extend its national presence across the Central, Western, and Coastal regions of Kenya. However, questions remain about the fate of its former employees, the legal implications of its restructuring plans, and the credibility of its new leadership.
The road ahead for Twiga may depend less on its strategic ambitions and more on whether it can restore trust among staff, suppliers, and investors alike. The whistleblower alleges that Twiga's workplace culture is fractured, with issues such as micromanagement, operational inefficiency, and alleged racial bias in hiring practices.
As Twiga integrates Jumra, Sojpar, and Raisons into its operations, it remains to be seen how these allegations will impact the company's future. For authoritative updates, it would be advisable to check official Twiga Foods communications or audited financial disclosures directly.
- Amidst the controversy surrounding Twiga Foods, stakeholders are questioning the company's future strategic decisions, particularly its shift towards a more asset-light model, due to lingering concerns about its financial health and alleged restructuring plans.
- The general-news surrounding Twiga Foods extends beyond allegations of financial evasion and questionable governance, to include concerns about its workplace culture, as a whistleblower has come forward with claims of underpaid labor, micromanagement, operational inefficiency, and alleged racial bias in hiring practices.
