GT Flow, formerly Twiga Foods, placed under administration for debt recovery

Nairobi, Kenya - GT Flow Limited, previously known as Twiga Foods One Limited, has been placed under administration to recover debts owed to suppliers and creditors. Mohamed Mohamed has been appointed as the administrator of the firm, taking control of its assets and management. The company's directors are now required to seek permission from the administrator before dealing with its assets.

This decision follows financial struggles faced by companies within the Twiga Foods ecosystem. In March, a petition was filed at the High Court to liquidate Twiga Tatu SEZ Limited due to outstanding debts. Under Kenya's Insolvency Act, creditors can petition for liquidation if a company cannot pay its debts. If granted, the company's assets would be managed by a court-appointed liquidator and sold to settle liabilities.

Twiga Foods, established in 2014, was a Nairobi-based business-to-business food distribution platform that utilized technology to connect farmers with urban vendors. The company had attracted significant funding from international investors, including development finance institutions and private equity firms. The financial difficulties of Twiga Foods arise in the context of increasing challenges for African startups, with venture-backed businesses facing pressure to cut costs, restructure, and strive for profitability.