Peter Njonjo, the CEO and co-founder of Twiga, has resigned from the company board, raising eyebrows and fueling speculations about his departure from the helm of the organization last year. Njonjo, who founded Twiga in 2013, had led the company until December 2023, when he announced an abrupt six-month sabbatical.
Earlier reports from TechCabal suggested that Njonjo's sudden sabbatical might have been a result of external pressures from major investors, Creadev and Juven, who played a pivotal role in a $35 million funding round aimed at stabilizing Twiga's financial situation.
In a letter dated January 4, 2024, addressed to the firm's board, Njonjo cited his inability to contribute "very little value" to the company's strategic direction and daily operations as the reason behind his resignation. It appears that Njonjo initially agreed to a six-month transition period at the board's request after his initial "resignation" to facilitate the recruitment of a new CEO.
This latest development seemingly confirms earlier reports from TechCabal, suggesting that Njonjo's sabbatical might have been a prelude to his eventual exit. Despite numerous attempts, Peter Njonjo has not responded to TechCabal's requests for comments.
Njonjo's financial moves before his exit also raise questions, as he closed a $35 million convertible bond just two weeks before announcing his sabbatical. Business Daily reported that Njonjo had contributed $1 million to the funding round led by Juven and Creadev, to settle outstanding obligations to vendors. However, a supplier currently in litigation with Twiga claims they have not been paid or informed of a payment plan, despite Twiga's assertion that around 100 vendors were notified.
Njonjo, in his resignation letter, expressed his commitment to be a supportive shareholder after leaving the board and mentioned considering new opportunities.
Twiga seems to be grappling with a leadership exodus, as Yebeltal Getachew, the former managing director for Coca-Cola's Nigerian office and Twiga's head of East Africa business since 2021, also departed in December. This comes at a time when the company has been gearing up for an aggressive expansion strategy.
As of now, Juven and Creadev have not responded to inquiries regarding these developments. The company remains embroiled in informal talks with vendors, and the future trajectory of Twiga under the new leadership remains uncertain.
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