Twiga Foods, an online business-to-business (B2B) e-commerce platform, has entered into a deal with three food distribution firms to strengthen its fast-moving consumer goods (FMCG) procurement capabilities.
Under the deal with Jumra (Nairobi and Central regions), Sojpar (Western region), and Raisons (Coastal region), Twiga Food’s parent company, Twiga Holdings, will also expand upcountry and improve operational efficiencies.
To achieve this, Twiga will leverage its countrywide warehouses and large delivery fleets to accelerate cost-efficient national scaling.
“This strategic partnership marks an important milestone for Twiga, toward realizing its ambition of becoming Kenya’s partner of choice for local and international FMCG brands across distribution channels including modern trade, wholesalers, mini-marts, dukas, kiosks, and mama mbogas (green grocers),” Twiga Holdings announced in a statement.
“Under the partnership, distribution industry veterans Raju Shah and Bijal Shah from Jumra, and Sunil Shah from Sojpar, will continue to lead operations, ensuring stability and sustained growth,” it added.
“This strategic collaboration allows Twiga to refocus its resources on accelerating the development and deployment of technology-driven solutions for the general trade ecosystem.”
The deal comes as demand for FMCG is continuing to rise in Kenya, with 2023 measurement data by NielsenIQ Retail showing that the country’s FMCG market expanded by 18.1 percent, albeit with a 3.3 percent decline in volumes.
“This transaction represents a pivotal moment in our journey. It not only concludes our transformation but also inaugurates a new period of sustainable growth, innovation, and unparalleled customer service,” Twiga Foods CEO Charles Ballard said.
“With our combined capabilities, we are uniquely positioned to be the partner of choice for suppliers and customers throughout Kenya.”
