Twiga CEO Peter Njonjo resigns, fueling forced departure speculations

Twiga’s CEO and co-founder, Peter Njonjo, has resigned from the company’s board. The former CEO cited his ability to contribute “very little value” in the future. This move seems to confirm earlier speculations of his forced departure as CEO in 2023. Njonjo, who founded Twiga in 2013, took a sudden six-month sabbatical in December 2023.

A report by TechCabal suggested his exit was influenced by investors Creadev and Juven, who played a major role in a $35 million funding round to assist Twiga with financial obligations to vendors.

“Currently, the strategic direction and daily operations are now firmly in the hands of Juven and Creadev, and there is very little value I can add from this point on,” Njonjo’s letter to his firm’s board, dated January 4, 2024, said. Njonjo said he had agreed to work through a six-month transition at the board’s request after his initial “resignation” to allow the board to recruit a new CEO. 

In his recent communication, Njonjo’s characterization of his sabbatical as a resignation appears to validate TechCabal’s previous reports. Investors and established figures in Kenya’s tech scene had privately suspected that his sabbatical served as a pretext for his eventual departure. As of now, there has been no response from Peter Njonjo regarding TechCabal’s inquiries.

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Twiga’s turmoil: Financial moves and leadership exodus

Two weeks before announcing his six-month sabbatical in December 2023, Njonjo secured a $35 million convertible bond to assist Twiga in settling debts with vendors. Njonjo, who contributed $1 million in that funding round led by Juven and Creadev, stated that the funds were intended for vendor payments.

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 plans to be a supportive shareholder post his board exit and is exploring other opportunities. Twiga also witnessed the departure of Yebeltal Getachew, the former managing director for Coca-Cola’s Nigerian office and head of Twiga’s East Africa business, in December. Despite inquiries, Juven and Creadev have not responded at the time of this report.

Read More: Kenya’s Twiga lays off 33% of its workforce, launches contractor-based logistics marketplace