Kenyan e-commerce giant Twiga Foods has announced a temporary suspension of its Nairobi operations for a two-month period, signaling the latest move in a comprehensive restructuring effort aimed at reshaping its business model. The company, which has raised over $180 million in venture funding, described the pause as part of “the final stage” of an internal overhaul. This decision comes amid mounting pressure to optimize operations and move away from its previously capital-heavy approach.
Distribution Shift and Facility Relocation
Twiga confirmed that the pause will facilitate a relocation from its current hub at Tatu City in Kiambu County to a more strategically positioned site nearer to Nairobi. The company is currently exploring new distribution centre options in Baba Dogo, Mombasa Road, and Syokimau. This shift is not only logistical but also symbolic, representing a broader change in how Twiga envisions its role in the supply chain.
From Infrastructure to Intelligence
Historically, Twiga’s model revolved around owning and managing logistics, warehousing, and even agricultural production—a strategy that has proven difficult to scale. The new direction places greater emphasis on an asset-light model driven by technology and data, focusing on matchmaking between farmers, vendors, and suppliers without directly handling inventory or transport. Executives suggest that this will help cut transportation costs, optimise stock levels, and better serve Kenya’s vast network of small retailers.
Market Pressures and Investor Influence
Twiga’s operational changes come against a backdrop of investor scrutiny and shifting market dynamics. According to former employees, the company was slow to pivot from its cost-intensive model, resulting in persistent losses and mismanaged logistics. The startup now acknowledges that its model must evolve to remain viable, and has confirmed that internal restructuring—particularly in supply chain roles—is ongoing.
Layoffs and Internal Challenges
Sources close to the company indicate that the internal shakeup has disproportionately impacted supply chain departments, where mismanagement allegedly led to high cash burn. The recently leaked Project Easter document, which detailed job cuts and department overhauls, has been tacitly confirmed by Twiga. This trend of repeated layoffs raises concerns about the long-term sustainability of Twiga’s operations and whether its revised structure will rely more on external partners than internal teams.
A New Direction Rooted in Technology
Twiga insists that despite operational turbulence, its commitment to digitising and streamlining food distribution remains intact. By centralising operations and deploying more advanced data analytics, the company hopes to balance cost control with service quality. It sees this evolution as essential to maintaining competitiveness and supporting the country’s fragmented B2B food distribution ecosystem.
The temporary closure of Twiga’s Nairobi operations marks a critical inflection point for the once high-flying startup. With investor demands for efficiency growing louder and its traditional model proving unsustainable, Twiga is now betting on a leaner, tech-driven future. Whether this recalibration will restore stability and rekindle growth remains to be seen, but the company is clearly repositioning itself to survive—and hopefully thrive—in Kenya’s evolving retail landscape.
Source : TechCabal