Kenyan startup Twiga Foods enters administration after years of financial pressure

Twiga Foods, one of Kenya’s most heavily funded startups, has entered administration after years of financial pressure and attempts to restructure its business.

According to a gazette notice published on September 11, GT Flow Limited, formerly known as Twiga Foods One Limited, entered administration on August 17, with Mohamed Mohamed appointed as administrator. He has taken control of the company’s business, assets and affairs, while directors can no longer deal with company assets without his express permission.

“The administrator takes control over the business assets and the management of the affairs of the Company without personal liability,” the notice read.

The administration follows nearly three years of job cuts, financial pressure and multiple changes to Twiga’s business and corporate structure. In May 2025, the company acquired three fast-moving consumer goods (FMCG) distributors and began building a group structure around them as it sought to pivot from the costly model that defined its earlier years.

Twiga Foods was founded in 2014 by Peter Njonjo and Grant Brooke to fix Kenya’s fragmented food supply chain. It built a technology-led distribution network that links farmers and suppliers to informal retailers, including kiosks and small shops, to reduce the number of middlemen and improve access to stock.

The company attracted $185.4 million in funding, according to Crunchbase data, making it one of Kenya’s most heavily funded startups. Its latest disclosed financing was a $35 million debt round in December 2023.

By then, Twiga was already under intense market pressure. The company had cut jobs and faced unpaid obligations, including a dispute with cloud services provider Incentro. In December 2023, before taking a six-month sabbatical, Njonjo closed a $35 million convertible bond deal backed by existing investors Creadev and Juven, as Twiga sought to pay suppliers and stabilise its finances.

Njonjo said he invested $1 million of his own money into the company before leaving. He stepped down from Twiga’s board in early 2024, with former Jumia executive Charles Ballard taking over as chief executive.

Twiga continued to reduce its workforce, including another round of layoffs in 2024. The company’s latest overhaul started in the second quarter of 2025, although its plans for a new corporate entity had surfaced earlier. In May 2025, TechCabal saw internal documents linked to a restructuring project referred to as a proposed “newco” that would sit above a group of operating businesses.

The structure became more concrete after Twiga acquired controlling stakes in Jumra, Sojpar and Raisons, three Kenyan FMCG distributors. The deals gave Twiga access to the distributors’ established customer bases and eight distribution centres across Kenya’s Central, Coast and Western regions.

Twiga told TechCabal at the time that the acquisitions would create a four-entity group and require a more structured setup to coordinate shared activities including procurement, logistics and technology.

“The internal references to a ‘newco’ reflect standard planning work in this context,” Twiga said. “They are part of a strategic process to align the group structure with the operational needs of a multi-entity platform.”

The company said Jumra, Sojpar and Raisons would continue operating independently while serving their existing formal customers. Twiga would focus mainly on informal retailers while gradually centralising functions including selected procurement, technology and business intelligence.

Twiga described the strategy as a hybrid, franchise-inspired model, with operations remaining decentralised while technology and support functions moved towards the centre. The restructuring affected more than 300 employees as Twiga moved from its complex operating model towards a leaner business with improved margins and working capital.

Twiga also reviewed its distribution network, exploring a possible exit or renegotiation of its Tatu City site while considering locations closer to Nairobi, including Baba Dogo, Mombasa Road and Syokimau.

GT Flow’s administration now brings fresh attention to the structure Twiga was building around its new group. The gazette notice does not state what assets or liabilities sit within GT Flow or whether the administration affects Twiga’s three acquired distributors. Mohamed said he would engage stakeholders to achieve “the best possible outcome” and asked creditors to submit their claims within 30 days.

True scale demands moving beyond surface-level integrations to robust execution. We’ve filtered the noise out of Moonshot 2026, optimising the conference strictly for high-calibre connections between startup founders, global financial operators, enterprise leaders and individuals rewiring Africa’s technical frameworks. Get 20% off Early Bird tickets for a limited time.