Twiga, the Kenyan agritech and retail distribution company, which has been restructuring and pivoting to profitability, has reportedly let go of over 300 employees to achieve its ‘NewCo’ dream.
According to a report by pan-African tech publication TechMoran, “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.”
The spin pivot was expected to see Twiga spin off a leaner logistics unit, phase out hundreds of existing roles and redefine its core supply chain strategy.
A total of 319 employees were to be let go between April and August 2025, with the supply chain and sales teams bearing the brunt to bring Twiga’s total headcount to 435 staff.
The new entity is expected to go live by August 2025, pending a short-term lease agreement for a new 5,000 square meter distribution center in Syokimau. The spinout will outsource most of staff.
“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 by cutting warehouse and headcount contracts while retaining its brand and tech capabilities in supply chain coordination.
“Some of the bloated deals also affecting the firm include the lease of a massive facility in Tatu City with nearly impossible exit terms, which continues to drain the company of capital. The new structure will help the company cut its teams, get out of the terrible lease and relaunch under a new structure,” the source told TechMoran.
