Co-founder and former CEO of Twiga Foods, Peter Njonjo, has resigned from the company’s board, after stepping down as CEO in December 2023 to take a six-month leave.
Njonjo’s resignation has raised questions about the circumstances surrounding his departure, especially regarding the subject of his six-month leave. Reports had previously hinted that Njonjo’s time off might have been a cover for his forced exit, particularly with the involvement of investors Creadev and Juven in a crucial $35 million funding round for Twiga.
At its core, Twiga operates as a cashless, mobile-based platform designed to streamline and enhance the supply chain for retail outlets, kiosks, and market stalls. The platform leverages technology to connect vendors with a seamless and efficient distribution network, addressing the unique challenges faced by millions of small businesses in African urban markets. The $35 million round was crucial for the company to settle obligations with vendors.
In his resignation letter dated January 4, 2024, Njonjo, who founded Twiga in 2013, acknowledged that the strategic direction and daily operations of Twiga were now in the hands of Juven and Creadev. He expressed his belief that he could only contribute “very little value” to the company at this point, seemingly confirming suspicions of his forced departure.
Njonjo revealed that, at the time of his sabbatical announcement, he had agreed to work through a six-month transition at the board’s request to facilitate the recruitment of a new CEO. His use of the term “resignation” to describe his sabbatical adds weight to earlier speculations.
Twiga, facing financial challenges, had closed a $35 million convertible bond just weeks before Njonjo’s leave. The funds were intended to settle outstanding payments to vendors, though reports indicate that at least one supplier engaged in litigation claims they have not been paid or informed of a payment plan.
Yebeltal Getachew, the former managing director for Coca-Cola’s Nigerian office, and head of Twiga’s East Africa business, also left the company in December 2023, marking another departure from the struggling company.
Njonjo, despite his resignation from the board, expressed his intention to remain a supportive shareholder. He is already exploring other opportunities that will occupy his time.
As of now, neither Juven nor Creadev has responded to inquiries regarding the recent developments at Twiga. The company’s future and leadership transition remain uncertain as stakeholders await further updates.