Twiga Foods, one of Kenya's prominent agritech firms, is undergoing a significant transformation as its founder and long-serving CEO, Peter Njonjo, officially steps down from the board, just a month after his dramatic resignation from the chief executive position.
Njonjo's departure marks the end of an era, leaving the reins of the company firmly in the hands of foreign stakeholders.
The announcement of Njonjo's exit was made public on December 14, revealing that the seasoned CEO had opted for a six-month leave following the closure of a substantial $35 million funding round.
This additional funding augmented the cumulative capital raised to an impressive $160 million since the company's inception, underscoring Twiga's stature as a major wholesaler and food distributor for retail shops in Nairobi and its surrounding areas.
In a move aimed at ensuring a smooth transition, Njonjo initially agreed to stay on the board for six months, facilitating the recruitment of a new CEO at the request of the company's board.
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However, the dynamics shifted abruptly when Njonjo curtailed his leave, submitting a succinct resignation letter that hinted at potential discord within the company.
In a notable twist of events, Peter Njonjo, in his resignation letter dated January 4, 2023, disclosed that subsequent to his resignation as CEO, he had acceded to the board's request to extend his tenure on the Twiga Board.
This extension, spanning six months, was designed to facilitate a seamless transition period allowing for the recruitment of a new Chief Executive Officer.
"At the request of the board after my resignation, I agreed to stay on the Twiga Board and work through a six-month transition that allowed for the recruitment of a new CEO. Currently, the strategic direction and daily operations are now firmly in the hands of Juven and Creadev, and there is little value I can add from this point on," Njonjo stated.
"In this regard, I would like to resign as a Director of Twiga Holdings. As a Founder, I will remain a committed shareholder of Twiga."
The letter, addressed to Hein Pretorius, the Twiga Holdings board chairman suggests a significant shift in the company's dynamics.
Njonjo, however, downplayed speculations of a boardroom coup, emphasizing his commitment to supporting the company in his new role as a shareholder.
When reached for comment, Njonjo stated, "I have strong faith in the current board and the management team, and I have decided that at this point in the company’s journey, I would want to play the role of a supportive shareholder."
He vehemently rejected claims of a power struggle within the company he founded, opting instead to focus on Twiga's next phase of growth.
As Twiga Foods enters this critical juncture in its trajectory, the departure of its founder and CEO marks a paradigm shift.
The company's future trajectory, now under the control of foreign stakeholders, will undoubtedly be closely watched as it embarks on a new chapter in the competitive landscape of agritech and food distribution in Kenya.
