Kenyan startup Twiga Foods enters administration after years of financial pressure

Kenyan startup Twiga Foods has entered administration after enduring years of financial challenges. The company, one of Kenya's most heavily funded startups, filed for administration on August 17, 2025, with Mohamed Mohamed appointed as administrator. Mohamed will take control of the company's business, assets, and affairs, while directors are barred from dealing with company assets without his express permission.

The administration stems from a series of job cuts, financial pressures, and multiple structural changes within Twiga Foods. In May 2025, the company acquired three fast-moving consumer goods (FMCG) distributors and began constructing a group structure around them, aiming to transition away from the costly model that defined its earlier years.

Twiga Foods was founded in 2014 with the goal of improving Kenya's fragmented food supply chain by creating a technology-led distribution network. Despite attracting $185.4 million in funding, the company faced intense market pressure, including job cuts, unpaid obligations, and a dispute with cloud services provider Incentro. Mohamed Mohamed, Twiga Foods' former CEO, closed a $35 million convertible bond deal in December 2023 to stabilize finances.

Twiga Foods' restructuring efforts, which began in the second quarter of 2025, saw the company acquire controlling stakes in three FMCG distributors, Jumra, Sojpar, and Raisons. These acquisitions aimed to create a four-entity group, with Twiga Foods focusing on informal retailers while gradually centralizing functions such as procurement, technology, and business intelligence.

The restructuring has impacted over 300 employees and is aimed at improving margins and working capital.