Nairobi-based agri-tech startup Twiga Foods, co-founded by Kenyan businessman Peter Njonjo, has reached a resolution with Google Cloud reseller Incentro Africa, putting an end to a lingering debt dispute that spanned more than four months.
Zuber Momoniat, CFO of Twiga Foods, revealed that Incentro has now agreed to drop the lawsuit, emphasizing a need to renegotiate the contract’s original terms with Google “in light of the current global economic climate.”
Incentro Africa CEO Dennis de Weerd commended the collaborative efforts, stating that the deliberation was largely successful, thanks to the exceptional work of Momoniat. De Weerd highlighted that this collaboration signifies an expansion of the relationship between Twiga Foods and Incentro Africa.
Incentro Africa vs. Twiga Foods — Unraveling the Google Cloud Services dispute
The conflict between the two companies began in September 2023 when Google Cloud Services provider Incentro Africa filed a lawsuit against Twiga Foods, seeking $261,878.75 in debt payments or potential liquidation. Responding to the legal threat, a Kenyan court granted a 60-day window for Twiga Foods to negotiate and settle the ongoing dispute.
To thwart Incentro’s plan for liquidation, Twiga Foods counteracted with a lawsuit, arguing that the demand was premature and driven by ulterior motives. The agritech startup contended that it was already in discussions with Google Ireland, the primary Google Cloud Services provider, regarding the outstanding bills, asserting that Incentro’s demand was made in bad faith.
Challenges and leadership shift at Twiga Foods spark concerns amid expansion plans
Twiga Foods, founded in 2013 by Njonjo and Grant Brooke, has been a transformative force in Kenya’s agricultural sector, revolutionizing the supply chain for high-quality produce. The company’s cashless mobile B2B supply platform has connected millions of small- and medium-sized vendors across urban centers in Africa.
In 2021, Twiga Foods secured substantial funding of $50 million from investors, signaling plans to expand operations not only within Kenya but also into neighboring countries. However, the recent challenges and Njonjo’s exit raise questions about the company’s stability and its ability to maintain its leadership position in the agri-tech sector.