Home » Kenyan tycoon Peter Njonjo’s Twiga thwarts liquidation attempt over debt dispute

Kenyan tycoon Peter Njonjo’s Twiga thwarts liquidation attempt over debt dispute

by Omokolade Ajayi
Peter Njonjo

Twiga Foods, the Nairobi-based agri-tech startup co-founded by Kenyan entrepreneur Peter Njonjo, has successfully halted cloud services provider Incentro Africa’s efforts to liquidate the company amid an ongoing dispute over an alleged Ksh39 million ($263,000) debt.

In reaction to a liquidation petition filed in court by Incentro Africa on Sept. 4, Twiga Foods, under the leadership of Njonjo, swiftly secured temporary court orders, effectively blocking the IT firm from proceeding with its plans to liquidate the company as it vehemently contests the legitimacy of the debt.

During the court proceedings, Twiga Foods argued that the liquidation petition seemed to have ulterior motives, suggesting that it was filed in retaliation. This claim stemmed from the startup’s direct communication with Google Ireland to express concerns over the billing account’s entry, structure, and management.

In a statement before Justice Josephine Mong’are, Twiga Foods contended that the demand for liquidation was defective and premature, further alleging that Incentro Africa Ltd acted in bad faith by attempting to coerce Twiga into settling a debt they argue does not exist.

Twiga Foods Head of Legal Daniel Ngugi commented on the situation, stating: “We firmly believe that this demand for liquidation is unfounded and malicious. It’s an attempt to force us into settling a debt that we have serious concerns about. We approached Google Ireland in good faith to address these concerns, and it seems this legal action is in retaliation.”

Twiga Foods, established in 2013 by Njonjo and Grant Brooke, has been a driving force in revolutionizing Kenya’s agricultural sector.

The startup has created an efficient supply chain for high-quality produce, benefiting Kenyan farmers and vendors alike. Their cashless mobile B2B supply platform has connected millions of small- and medium-sized vendors in urban centers across Africa.

In 2021, Twiga Foods secured a substantial $50 million in funding from investors, which they aimed to utilize for expanding their operations not only in Kenya but also in neighboring countries.

This capital injection came after a successful funding round in 2019, where the company raised $30 million in a Series-B round, bringing their total funding to more than $100 million in debt and equity financing.

Twiga Foods remains determined to protect its interests and defend itself against the liquidation attempt by Incentro Africa Ltd. as the legal dispute unfolds in the Kenyan courts.

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