In a dramatic turn of events for Kenya’s agritech giant Twiga Foods, Chief Executive Officer (CEO) Peter Njonjo has resigned from the board a month after his departure as chief executive.
According to reports by Business Daily, this decision comes amidst the company grappling with operational challenges, such as staff layoffs, deferred payments to suppliers, and delayed salaries.
Mr Njonjo’s departure, revealed on December 14, coincided with his six-month leave after successfully overseeing a $35 million funding round, with a total capital raised of $160 million since the company’s inception. Foreign shareholders Creadev and Juven, crucial in the recent funding, took operational control, aiding Twiga in settling debts and achieving financial stability.
Despite Njonjo’s successful 10 years tenure attracting over $100 million in funding and expanding operations across Kenya and into Uganda, financial challenges persisted. Twiga faced a debt tussle with Incentro Africa and laid off a third of its staff in a restructuring plan last year.
“Mr Njonjo, in his resignation letter, acknowledged the need for leadership transition during challenging times and agreed to a six-month transition for recruiting a new CEO. He expressed confidence in the current board and management, having invested $1 million in the recent funding round,” the report indicated.
On December 14, 2023, Mr Njonjo took a voluntary six-month sabbatical, citing personal matters and leaving Chief Operations Officer (COO), Laurent Gouault and Chief Financial Officer (CFO), Zuber Momoniata in charge of operational and financial functions, respectively. Twiga had recently raised undisclosed funding, resolving the debt tussle with Incentro Africa and avoiding liquidation.
The board supported Njonjo’s sabbatical, praising his commitment to completing Twiga’s recent funding round. Twiga’s chairman, Hein Pretorius, expressed confidence in the senior leadership team and anticipated further growth.
Meanwhile, Twiga Foods under Mr Njonjo’s leadership revealed that suppliers are yet to benefit from the Sh300 million Hustler Fund promised by the government in November last year. He earlier explained the delays, attributing them to the establishment of the fund’s disbursement framework. Twiga, though not the intended recipient, aimed to facilitate customer access to the fund through its platform.
The revelation coincided with Twiga’s efforts to cut operational costs, leading to a 40% reduction in permanent employees. Mr Njonjo clarified the restructuring plan, dispelling rumors of closure but emphasizing the transformation of operations in Nairobi, Thika, and Machakos for last-mile distribution and transitioning to a wholesale model for Western Kenya and Uganda.