Twiga Foods, a Kenyan B2B e-commerce startup, is shifting its strategy and pivoting after years of pursuing direct operations, including managing farms, delivery fleets, and supply chains. In April, Twiga acquired controlling shares in three local FMCG distributors: Jumra, Sojpar, and Raisons to cut costs and improve profits while figuring out how best to navigate Kenya’s scattered retail market.
Kenya’s B2B FMCG trade is still largely informal, with fragmented supply chains, overlapping distribution networks, and, to some extent, minimal use of technology. Twiga, launched in 2014, once tried to fix this through vertical integration, building and owning the entire supply chain from farm to shelf. That approach was capital-intensive and operationally complex. The company now wants to merge traditional distribution with software and procurement systems while outsourcing physical operations to third-party operators.
The three acquired firms will continue to run their existing businesses. Twiga says it will introduce its software stack, including warehouse management systems, route optimisation, and data tools, but will not take over day-to-day logistics. The original management of Jumra, Sojpar, and Raisons remains in place.
“These acquisitions are a key step in our strategic transformation,” a Twiga spokesperson told . “They enable Twiga to scale quickly and efficiently by leveraging these distributors’ market experience and operational capabilities. The integration creates mutual benefits: the distributors gain access to Twiga’s advanced Tech stack, business intelligence (BI)/data analytics, sales expertise, and institutional capital, while Twiga significantly extends its geographical reach and operational capabilities.”
The acquisition gives Twiga access to eight distribution centres across Central, Coast, and Western Kenya. Instead of building new infrastructure, it will use existing facilities, while cutting costs. The company declined to disclose the value of the acquisitions or the revenues of the acquired firms.
The new strategy avoids the failures of Twiga’s earlier commercial model, which forced the company to adjust its operations multiple times. The company once operated its commercial farms, worked directly with farmers, and managed much of the transport and delivery in-house. That model helped Twiga control quality and pricing and created high fixed costs. In 2023, the company shut down its farming unit, laid off staff, and began pivoting to an asset-light model.
Twiga will focus on serving informal retailers (a shift from its earlier urban-only model), while the three acquired firms will continue with formal trade clients. Integration will not be immediate, Twiga told . Joint procurement is planned for some product categories, but Twiga has not explained how decision-making will be shared across the four entities.
One goal is to reduce supplier payment delays and improve cash conversion cycles, both of which have strained Twiga’s relationships with vendors in the past. Twiga likely believes that shared procurement and inventory visibility will ease pressure on working capital.
The deal was financed by existing shareholders Juven and Creadev, suggesting that Twiga did not raise new external funding. It also points to a cautious investment environment, where investors prefer consolidation and lower-risk expansion over aggressive growth strategies. Twiga declined to comment on the details of the transaction.
Twiga chose to reinvest, without revealing how much or when, instead of raising fresh capital, a move that signals investor unease over its delayed path to breakeven. Twiga’s ability to stabilise margins through decentralisation could determine how soon it attracts fresh institutional backing.
Twiga describes the new approach as a hybrid model, “decentralised in operations to maintain agility and local knowledge, yet centralised in tech, BI and support processes, delivering optimal efficiency.” But the mechanics of that model remain unclear. Despite claiming that each firm runs its operations, Twiga does not disclose its influence over core functions like pricing, inventory management, and fulfilment. It did not disclose how to measure success in such a decentralised environment.
Twiga is also reviewing the future of its main logistics base. On May 16, it confirmed to that it may move out of Tatu City and is considering locations like Syokimau or Mombasa Road, which are closer to existing trade routes, which indicates a shift in priorities, possibly from long-term infrastructure projects to cost control and proximity to clients.
The current base at Tatu City, while purpose-built, has been expensive to run and less efficient for last-mile distribution. Moving closer to Nairobi’s dense trade corridors could shorten delivery routes while reducing fuel and fleet costs.
Twiga’s pivot reflects a broader trend among African startups. Many startups that raised large funding rounds between 2019 and 2023, peaking at $4.6 billion in 2022, are now under pressure to show profitability. Fintech giant Flutterwave is focused on profitability in 2025 ahead of its much-talked-about IPO. Grand narratives of disruption have been replaced by talk of discipline, focus, and operating leverage.
“We are moving to a leaner, disciplined model with improved margins and working capital,” the company said.
Whether this new approach can solve the long-standing issues in Kenya’s distribution sector remains to be seen. Managing logistics in Kenya involves more than software since it requires strong ground execution, local relationships, and adapting to volatile demand. Twiga is no longer trying to control everything. Whether it can coordinate effectively across semi-independent businesses or deliver better results under its new structure is unclear.
