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Recent revelations have shed light on Kenyan entrepreneur Peter Njonjo’s transfer of 20,000 acres from the Galana-Kulalu scheme, a government agricultural project, to his private company.
Njonjo, the CEO and co-founder of Twiga Foods, a prominent Nairobi-based agri-tech startup, undertook the transfer through his firm, Selu Limited, as indicated by official records from the company registry.
The Galana-Kulalu scheme, originally designed to enhance regional agricultural productivity, was allocated to Twiga Foods earlier this year.
The company, recognized for using technology to connect agricultural product suppliers with consumers, intended to use the land for a pilot maize farming project. The plan was to expand this initiative to encompass 20,000 acres.
However, in June, Njonjo revealed that development rights for the project would be handed over to Selu Limited, a special purpose vehicle (SPV) under his ownership. Njonjo explained that this shift was due to the need for specialized farming expertise, an area outside Twiga’s core competency.
The ownership disclosure of Selu Limited being in the hands of Peter Njonjo himself, as opposed to earlier statements suggesting Latin American and US firm involvement, has raised questions about transparency and governance.
Twiga Foods has been navigating efforts to cut costs despite amassing a substantial $160 million since its inception.
Twiga Foods, founded in 2013 by Njonjo and Grant Brooke, has gained recognition for its impact on Kenya’s agricultural landscape. The company’s innovative supply chain approach benefits local farmers and vendors by facilitating the distribution of high-quality produce.
Operating primarily as a B2B supply platform, the startup has successfully connected numerous small- and medium-sized vendors across urban areas in Africa.
CEO Njonjo confirmed that Twiga Foods is committed to reducing operating costs by up to 40 percent. This initiative includes a reduction of approximately one-third of the company’s permanent workforce by next month.
