Twiga Foods, the Nairobi-based agri-tech startup led by Kenyan entrepreneur Peter Njonjo has recently made a strategic move to reduce operating expenses and boost earnings by terminating 130 sales agents over the past two months.
The decision comes in response to intensifying competition in the food delivery industry, which has significantly impacted the company’s revenue. The startup had previously initiated a cost-cutting and restructuring operation eight months ago, with the aim of streamlining the workforce and reducing allowances for remaining employees.
In an announcement made on Monday, Njonjo stated that the sales agents were let go as part of the company’s plan to solely engage agents who demonstrate promising sales performance. Out of a total of 440 agent territories, 50 were inactive, leaving a net count of 390. Among them, 130 were not meeting expectations and were subsequently released from their positions.
According to Njonjo, the decision to part ways with the agents was made to ensure the company’s continued growth and success. Twiga Foods will now operate on a business model that incentivizes effort and entrepreneurial spirit by offering increased earnings to active sales agents.
In other sectors such as insurance and banking, this model has proven successful, and active sales agents can earn up to Ksh30,000 ($215) per week, while inactive agents may receive as little as Ksh2,000 ($14.3) in commission.
Founded in 2013 by Peter Njonjo and Grant Brooke, Twiga Foods aims to create a fair and modern market for Kenyan farmers and vendors by providing them with a comprehensive supply chain for high-quality produce.
The startup operates a cashless mobile B2B supply platform, connecting millions of small- and medium-sized vendors in African urban centers. In 2021, Twiga Foods secured $50 million from investors to expand its operations in Kenya and neighboring countries.
This capital injection follows a previous funding round in 2019, where the company raised $30 million in a Series-B round, bringing its total funding to over $100 million in debt and equity financing.
