Twiga Holdings, the parent company of Twiga Foods, has announced the acquisition of three regional food distributors in Kenya. These are Jumra (serving Nairobi and Central), Sojpar (Western) and Raisons (Coastal). This is part of the company’s expansion strategy and to streamline food distribution across Kenya.
The acquisition is part of Twiga’s ongoing transformation strategy. It also marks a significant change in how the company operates across the country. The three distributors will be integrated into Twiga’s supply chain systems and also gain access to institutional capital to help with their growth. In return, they will take on select operational responsibilities from Twiga under this new collaboration model.
Twiga CEO Charles Ballard described the deal as a milestone for the company, stating:
“This transaction represents a pivotal moment in our journey. It not only concludes our transformation but also inaugurates a new period of sustainable growth, innovation, and unparalleled customer service. With our combined capabilities, we are uniquely positioned to be the partner of choice for suppliers and customers throughout Kenya.”
Read: Twiga Foods Appoints Charles Ballard as its new CEO
As part of the expansion, Twiga will utilize the distributors’ warehouses and delivery fleets to enhance cost-efficiency and scaling efforts. The company is also set to resume operations in Kenya’s Western Region. Further expansion to additional regions is planned in the coming months.
Raju Shah, CEO of Jumra, expressed optimism about the partnership:
“Twiga’s investment unlocks exciting new opportunities for Jumra. Twiga’s advanced technology, extensive market reach, and deep insights will enable us to serve our suppliers and customers more effectively, expand our distribution channels and product lines, and drive sustained growth.”
Hein Pretorius, Chairman of Twiga Holdings, added:
“We are confident in the combined expertise and dynamic leadership of Charles, Raju, and Sunil. We are particularly delighted to partner with Raju and Sunil, whose deep-rooted, generational knowledge of the Kenyan distribution ecosystem strengthens Twiga’s value proposition. Their complementary strengths will undoubtedly propel the group to become the food distribution champion in the region.”
Controversy
The acquisition comes amid a series of allegations circulating on social media and from former employees. There are claims that Twiga Foods may have used the opportunity presented by the acquisition to execute a mass layoff. On the other hand, some people are suggesting that the layoffs were part of a broader restructuring effort and are not related to the acquisition. Some of Twiga’s long-serving staff have been let go without due notice or severance and entire departments were dissolved with little communication. This can’t be right and is what Twiga has to address as soon as possible.
These allegations raise questions about the company’s handling of employee welfare and transparency during what is supposed to be a period of expansion. TechArena reached out to Twiga for comment and clarification on the matter. As of the time of publishing, the company had not responded.
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