Twiga Foods plans to scale down its workforce and freeze operations in Nairobi, according to the Business Daily. The publication reports that the startup will pause operations in Nairobi for 60 days until August. During this period, the startup will develop an alternative distribution center in a more strategic location.
Back in April, the startup announced the acquisition of three regional food distributors in Kenya. These are Jumra (serving Nairobi and Central), Sojpar (Western), and Raisons (Coastal). This acquisition was part of the company’s expansion strategy to streamline food distribution across Kenya. When this announcement was made in April, TechArena reached out to Twiga for clarification, but we did not get a response on time.
With the latest revelation on the operations freeze, the startup will have room for structural realignment following its recent acquisitions.
A statement from the company read, “The reorganisation impacts a certain number of roles, mainly within supply chain functions. This workforce adjustment process is being conducted transparently, respectfully, and in strict compliance with Kenyan labour laws and internal company policies. Twiga Foods is committed to supporting all affected employees during this period.”
Twiga did not disclose how many employees will be impacted or where the new distribution centre will be located. TechCabal has reported that about 319 employees will be impacted, and most of the affected will be in the supply chain department.
Twiga reaffirmed that it is “actively engaging its customers, suppliers and business partners to ensure a smooth transition and minimise any potential disruptions.”
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