Kenya's agtech superstar, Twiga Foods, is in hot water as it faces a serious financial crisis that could lead to its liquidation. What's at stake? A whopping debt of Sh39 million, which translates to about $263,691 in US dollars.
The twist in the tale? Incentro Africa, a key partner of Twiga Foods that provided them with Google Cloud Services and Partner Service Funds, is throwing a wrench into the works. They're saying, "Hold on, this debt isn't as clear-cut as it seems."
In fact, Incentro Africa has taken the drastic step of filing for insolvency against Twiga Foods, like a heavyweight boxing match in the business world.
In a legal showdown, Incentro Africa set a deadline for Twiga Foods: settle the debt by Monday, September 25, or brace for liquidation. But Twiga Foods isn't taking this lying down. They're firing back, calling Incentro Africa's moves "premature" and suggesting some shady motives are at play.
Now, it's all eyes on the court. The judge will soon make the call on whether Incentro Africa can go ahead with the plan to liquidate Twiga Foods. Talk about high-stakes drama!
In the meantime, Twiga Foods isn't just twiddling its thumbs. They've pulled out all the stops to prevent liquidation, and they've even submitted an urgent certificate to the court. Game on!
So, what's the backstory here? Twiga Foods and Incentro joined forces back in 2021, when Twiga was just starting to spread its wings. As they grew, they realized that having a smooth operation was the name of the game. That's where Incentro came in, providing the tech support they needed.
By using fancy tech lingo like "Google Kubernetes Engine (GKE)" and partnering with Incentro, Twiga Foods streamlined their operations and made things run like clockwork. Incentro's Google Cloud expertise became their secret weapon for making the right calls on tech stuff.
But like many businesses, Twiga Foods has had its share of ups and downs. Just a month ago, they had to wave goodbye to about 283 employees as they tightened their belts. Tough times, indeed!
But don't believe the rumors about Twiga Foods shutting down its operations in Uganda. Their CEO, Peter Njonjo, says that's just not happening. In his words, "There is no closure of operations. We continue to operate in Uganda, and our farm is operational."
In response to changing times and economic challenges, Twiga Foods has been making strategic moves. They did a bit of a makeover to their sales approach, even getting rid of their entire sales team last year. Adaptation is the name of the game, after all!
And speaking of money, Mr. Njonjo spilled the beans back in June, saying they managed to raise a cool Sh23.2 billion from investors between 2017 and 2021. But lately, it seems like the funding faucet has been turned down a notch.
Now, it's crunch time for Twiga Foods as they await the court's decision. The outcome could have ripple effects not only for them but for Kenya's agtech industry as a whole. Stay tuned, folks—this is a business battle worth watching!
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