Twiga Foods acquires three FMCG distributors in push to expand across Kenya

KENYA – Kenyan agri-tech firm Twiga Foods has bought majority shares in three regional distributors as part of its plan to grow its product range and extend its market coverage beyond fresh produce.

The company announced the acquisition of Jumra in Nairobi, Sojpar in Kisumu, and Raisons in Mombasa. These distributors handle a mix of goods including food, drinks, household supplies, cosmetics, and stationery.

While Twiga did not reveal how much the deals cost, it confirmed that the move is aimed at building a stronger and more reliable distribution system.

Jumra covers the Nairobi and Central Kenya regions, while Sojpar operates in the Western part of the country. Raisons focuses on the Coastal region.

Twiga will now be able to use these companies’ existing market knowledge and supply links to improve its service delivery, especially in areas it had exited earlier.

“This strategic alignment underscores Twiga’s commitment to modernising Kenya’s food distribution landscape, combining these established distributors’ deep market knowledge, operational excellence, and cost-efficient practices with its advanced technology and analytics,” the firm said in a statement released Wednesday.

Twiga added that Jumra and Sojpar officials will take charge of day-to-day operations. The parent company will shift its focus to building the tech side of the business, hoping this division of roles will help keep the model efficient and sustainable.

Re-entering Western Kenya

This new arrangement marks Twiga’s return to the Western region of Kenya. The company had started setting up there in 2021 but slowed down after a change in its business plan and a wave of staff cuts.

With the latest move, Twiga aims to tap into a growing demand for digital platforms in food and grocery shopping.

Charles Ballard, who took over as CEO in January 2024, now leads the company following the exit of co-founder Peter Njonjo. Ballard, who previously worked with Jumia Kenya, steps in at a time when the company is trying to rebuild from a difficult phase marked by delayed payments and salary cuts.

In 2023, Twiga announced it was reducing its workforce by 40 percent to manage costs after raising $160 million since it started.

Looking Ahead

Twiga says the three acquisitions will help it create “a stronger, smarter, and more digital distribution platform.” A recent post on the company’s LinkedIn page read:

“We’ve just taken a major step forward in our journey to build Kenya’s leading B2B eCommerce platform. By combining Twiga’s tech and fresh produce expertise with the strong procurement capabilities and deep local knowledge of our new partners, we’re creating a stronger, smarter, and more digital distribution platform – helping brands grow and making life easier for all retailers across Kenya.”

Kenya’s e-commerce industry is on a steady rise, expected to bring in Ksh.28 billion ($208.2 million) by 2027.

Online shopping for food and groceries is also growing fast, with the number of consumers projected to increase to 10.5 million by 2027, up from 9.3 percent in 2023.

More companies are also putting money into storage and delivery services to meet the rising demand. This includes firms like Jumia, Glovo, Uber Eats, and Twiga Foods, which are all building faster, better networks to reach more people across the country.

As Kenya works on new rules to guide e-commerce, including data and consumer protection laws, Twiga’s latest move shows how companies are adjusting early to stay ahead.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.