CEO Peter Njonjo Steps Down
In a surprising turn of events, Twiga's CEO and co-founder, Peter Njonjo, has officially resigned from the company's board, casting shadows on the future of the East African tech giant. Njonjo, a key figure in Twiga since its inception in 2013, cited his ability to contribute "very little value" in the future as the primary reason for his departure.
A Closer Look at Njonjo's Resignation
Speculations of a forced departure had been circulating since 2023, and Njonjo's resignation from the board seems to validate these rumors. His sudden six-month sabbatical in December 2023 raised eyebrows, as a previous report suggested that influential investors, Creadev and Juven, played a crucial role in a $35 million funding round, possibly linked to financial obligations to vendors.
Njonjo's Perspective on the Departure
In a letter dated January 4, 2024, addressed to the firm's board, Njonjo clarified his decision, stating, "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." This admission appears to align with earlier suspicions of a power shift within the company.
Unraveling the Timeline
Njonjo's characterization of his six-month sabbatical as a resignation has further fueled intrigue. Previous reports had hinted at the possibility that the sabbatical was a strategic move leading to Njonjo's eventual departure. The lack of response from Peter Njonjo to TechCabal's inquiries adds an air of mystery to the unfolding scenario.
Njonjo's $35 Million Bond and Vendor Debts
Two weeks before announcing his sabbatical, Njonjo secured a $35 million convertible bond aimed at helping Twiga settle debts with vendors. Despite his personal contribution of $1 million to the funding round led by Juven and Creadev, reports suggest that some suppliers are currently in litigation with Twiga, claiming non-payment despite the company's assurance that around 100 vendors were notified.
Yebeltal Getachew's Departure
The turmoil at Twiga extends beyond Njonjo's departure, as Yebeltal Getachew, the former managing director for Coca-Cola’s Nigerian office and head of Twiga’s East Africa business, also bid farewell in December. The dual exit raises questions about the company's internal dynamics and the reasons behind key personnel stepping away.
Juven and Creadev Stay Mum
Despite the inquiries surrounding Twiga's recent developments, investors Juven and Creadev have remained silent, adding to the mystery. The lack of response raises questions about their role in the current state of affairs and the future trajectory they envision for Twiga.
In the midst of uncertainty, Njonjo has expressed his intent to be a supportive shareholder post his board exit, leaving the tech community curious about what lies ahead for Twiga and its once-stable leadership structure.