Incentro Africa Limited has issued a stern notice, warning that failure to settle the outstanding amount may compel them to seek a liquidation order against Twiga Foods. The insolvency notice, initially set to expire on September 25th, exposed Twiga Foods to the possibility of liquidation. Consequently, the agri-tech firm submitted a certificate of urgency, aiming to halt any potential liquidation.
Twiga Foods argues that Incentro's demands are premature, as the company is actively engaged in discussions with Google Ireland regarding the contested debt. Today, the court is expected to make a pivotal decision on the next steps in this ongoing dispute.
While Kenyan agrifoodtech companies have collectively secured KES 89.8 billion in investment funding over the past decade, Twiga Foods has attracted a significant portion, raising Sh23.2 billion. Despite this substantial funding, Twiga Foods has faced operational challenges, including a recent layoff of 267 employees, a shift to independent contractors, and reductions in staff benefits.
Moreover, the company has encountered friction with suppliers over unsettled bills, leading to some suppliers severing ties with Twiga Foods. The dearth of funding has been a common struggle for African tech startups in 2023, with a 77% drop in funding observed in the agri-tech sector compared to the same period last year.
Twiga Foods remains resilient in the face of these challenges, with CEO and Co-founder Mr. Peter Njonjo emphasizing the company's transformation. While not closing down, Twiga Foods is reconfiguring its operations in Nairobi, Thika, and Machakos for last-mile distribution and transitioning to a wholesale model for Western Kenya and Uganda, adapting to the evolving business landscape.