Twiga Foods temporarily halts Nairobi operations to realign strategy, cut costs 

KENYA – Twiga Foods, a leading Kenyan e-commerce startup, has announced a temporary two-month suspension of its Nairobi operations, effective immediately, as it undergoes a major strategic overhaul.  

The company aims to resume deliveries in early August 2025. 

The move comes as part of Twiga’s broader shift toward a leaner, more data-driven distribution model. The company cited the need to implement critical improvements to its supply chain operations as a reason for the temporary pause.  

“Twiga has temporarily paused operations to implement key improvements,” the statement read. “We appreciate your patience and support during this period.” 

During this period, Twiga will relocate its current distribution hub from Tatu City in Kiambu County to a new site closer to Nairobi’s central commercial zones.  

Proposed areas for the new facility include Baba Dogo, Mombasa Road, and Syokimau—locations considered more strategic for last-mile distribution. 

Twiga has expanded its reach over the years through acquisitions of local distributors such as Jumra, Sojpar, and Raisons, resulting in a network of eight distribution centers across Central, Coast, and Western Kenya.  

However, the company is now opting to scale back infrastructure investments in Nairobi, indicating a pivot to an asset-light operational strategy. 

Despite securing over US$180 million in funding since its inception, Twiga has faced challenges scaling its capital-intensive supply chain model in the Kenyan market.  

Its latest fundraising activity was a US$35 million convertible note round in 2023. Insiders report increasing investor pressure to enforce cost discipline and boost operational efficiency. 

Multiple rounds of layoffs and restructuring have accompanied this transition, reflecting Twiga’s efforts to reduce overheads and retool its approach.  

The company’s management is focused on centralizing logistics, cutting transportation costs, and leveraging technology to better serve small retailers. 

Twiga hopes this operational reset will position it more competitively and help it remain viable in Kenya’s evolving retail landscape. 

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