Twiga Unveils NewCo With Outsourced Logistics, Trims Staff by 73%

Twiga, the agritech and retail distribution company once celebrated for its high-growth logistics network across Kenya, is embarking on a major operational overhaul under a confidential internal initiative dubbed “Project Easter.”

According to internal sources who spoke to TechMoran on condition of anonymity, the pivot will see the company spin off a leaner logistics unit, while phasing out hundreds of existing roles and redefining its core supply chain strategy.

The “NewCo,” will see 319 employees exit the company, with the supply chain and sales teams bearing the brunt of the restructuring. Twiga’s total headcount will shrink to 435 staff, with a sizable number expected to be reassigned under the new model or absorbed into third-party logistics (3PL) arrangements namely Jumra, Sojpar, and Raisons.

The sweeping transformation, will see Twiga drop bulky infrastructure to a more agile, outsourced logistics operation. The new entity has already been fully incorporated and is going live by August 2025, pending a short-term lease agreement for a new 5,000 square meter distribution center in Syokimau.

“We’re building for operational efficiency,” an internal memo reads. “No fresh produce, reduced delivery frequency to 48 hours, and warehouse supervision fully handled by experienced 3PL providers.”

The spinout is expected to initially rely on less than 10 key staff from Twiga while supervision and casual labor are delegated to outsourced partners announced earlier in the year.

The downsizing effort—captured under a separate “DC Exit” plan—includes HR-led redundancies, licensing transitions, and a full assessment of liabilities and assets. A preliminary internal audit shows 90% visibility into assets in Twiga’s TFL and SEZ hubs. Interests of investors Creadev and Juven and any intellectual property have been transfered to the NewCo.

“Licensing agreements must ensure continuity of brand and customer base under NewCo,” says the document, indicating that Twiga is keen on preserving market relationships even as it pulls back from asset-heavy operations.

The new operation is aimed at reducing Twiga’s heavy burn rate to make the whole operation make business sense.

Twiga’s pivot reflects broader market pressures facing African logistics startups that expanded aggressively during the COVID-era e-commerce boom. Mounting operational costs, shrinking venture capital, and heightened expectations for profitability have pushed many to rethink scale-at-all-costs strategies.

With NewCo, Twiga is betting on a lighter model—one that sheds the weight of warehouses and headcount while still leveraging its brand and tech capabilities in supply chain coordination.

If successful, the move could serve as a blueprint for logistics players across emerging markets looking to streamline while maintaining service reliability.

There have also been allegations of a pattern of corruption, incompetence, and exploitation at the firm and a complete disconnect from the realities of the business by some in management.

The management has been accused of reportedly focussing on investor interests without regard to the product, the work and the people leading to brutal cost-cutting instead of refining the product for the market.

There have been allegations of slashing the lowest paid staff’s salaries from Ksh 50,000 to Ksh 20,000 while the top management enjoy all the trappings of executive luxury.

“Apart from high employee turnover, Twiga is stuck in manual, outdated processes grind, with no serious investment in systems or infrastructure,” said our source. “Charles is running a shell held together by underpaid labour in fear of his many explosive outbursts.”

“Worse still is the culture of exclusion that has taken root under Charles’ leadership. Black professionals and local staff are systematically pushed out of decision-making. They are excluded from strategy meetings, removed from leadership roles, and routinely humiliated,” the source told TechMoran. “Charles has brought in his own inner circle—largely French nationals—many of whom lack even the basic qualifications for the roles they’ve been handed. Even jobs requiring just two years of experience are routinely filled by foreign hires, flown in and placed above better-qualified local staff.”

“There is no pathway for locals to advance. Leadership is entirely removed from the informal markets it claims to serve. No wonder the company consistently misses the mark,” the source added.

Some of the bloated deals also affcting the firm include the lease of a massive facility in Tatu City with nearly impossible exit terms, continues to drain the company of capital.

The new structure will help the company cut its teams, get out the terrible lease and relaunch under a new structure.

“So now, the company intends to declare financial distress, file a manufactured bankruptcy, fire over 300 employees, transfer assets to a new entity with a planned acquisition (already happened), and restart operations quietly on the other side,” said our source early in April.

See below ”Project Easter workstreams” summarizing progress and next steps on launching a new company (“NewCo”) and exiting an existing distribution center (DC) operation.

🔶 NewCo Workstreams (Yellow Section)

🔷 DC Exit Workstreams (Blue Section)

• NewCo is in the incorporation phase and will operate with a lean setup via 3PLs.
• Distribution Center (DC) operations are transitioning, with a short-term lease in progress and staffing likely being outsourced.
• Exit strategy from current setup involves legal, HR, and asset handovers.
• Key transitions are driven by cost optimization (e.g., lowering burn rate, downsizing, outsourcing logistics).

Breakdown of employees by department and status (Leaving, Office/DC staff, Field staff, and Total).

• The highlighted cell (18 under Office/DC staff for SC) has a footnote indicating:
  “Likely to be fully transferred to Jump, except Ankur (and likely to go down to 10–12 staff only).”
• This suggests a significant downsizing or restructuring of the Supply Chain team.
• Most reductions appear to come from SC (267 leaving) and Sales (28 leaving).