Tech firm seeks Twiga Foods’ liquidation over Sh39m ‘debt’
Twiga Foods staff grade bananas at one of the company’s warehouses in Nairobi in 2019.
What you need to know:
Twiga Foods is owned by billionaire businessman Peter Njonjo and Mr Grant Brooke.
The company recently downsized its workforce by sending home 267 staff.
The problems facing Kenyan agri-tech firm Twiga Foods Limited seem to be far from over, with the latest liquidation notice targeting it coming from technology company Incentro Africa Limited, which is seeking to recover nearly Sh39 million in unpaid debts.
Twiga Foods is owned by billionaire businessman Peter Njonjo and Mr Grant Brooke.
They are the co-founders of the enterprise that has been trying to stay afloat amid a biting cash crunch that is threatening its operations.
Incentro Africa says in court papers that it has filed for insolvency against Twiga Foods after the latter failed to pay $261,878.75 (Sh39 million) for the provision of Google Cloud Services and Partner Service Funds under its Google Partners Funding Programme.
“Further take notice that failure to pay aforesaid amount shall result in Incentro Africa Limited filing for liquidation order against you,” the notice further reads.
But Twiga Foods, aware that the insolvency notice expired on Monday and it could be open to possible liquidation, moved to court on September 25 under a certificate of urgency seeking to stop the liquidation.
It argued that the statutory demand is in bad faith and has an ulterior motive. Twiga Foods cited an attempt to compel the company settle a disputed debt.
Twiga Group CEO Peter Njonjo speaks to journalists during a past event.
“That the company vehemently opposes the statutory demands as it has been presented prematurely as the company is in discussion with Google Ireland Limited the ultimate provider of the Google Cloud Services.”
“The company disputes owing the amount of $261,878.75 as set out in the statutory demand, the statutory is made in bad faith and with an ulterior motive and, in particular, an attempt to compel the company settle a disputed debt and the company is solvent and still operational,’’ Twiga Foods says in its court papers.
The company recently downsized its workforce by sending home 267 staff. It also reduced staff allowances in a bid to trim its wage bill, citing financial difficulties amid reports that some suppliers have stopped bringing in their produce over long-term debts running into millions.
Mr Njonjo, who is the chief executive officer at Twiga Foods, last month told Nation sister paper Business Daily that between the year 2017 and 2021, the company had raised Sh23.2 billion in investor funding.
“It was around that time that we also raised a huge portion of our financing before the funds later dried up. Cumulatively, we have raised Sh23.2 billion,”he said. The court is today expected to rule on whether Incentro Africa should continue with the liquidation process after Twiga Foods moved to court on Monday to stop it.
Last year, on November 28, during the launch of Twiga Foods’ distribution centre at Tatu City in Kiambu County, President William Ruto said Twiga Foods would be one of the beneficiaries of a Sh300 million Hustler Fund grant for onward lending to its suppliers and customers.
Mr Njonjo, in a recent media roundtable, was quoted as saying that his enterprise has never received the money.
