KENYA – Twiga Foods Limited, Kenyan based agri-tech firm has received a liquidation notice from Incentro Africa Limited, which is seeking to recover nearly USD 261,879 (Sh39 million) in unpaid debts.
Led by billionaire entrepreneur and CEO Peter Njonjo and co-founder Mt. Grant Brooke, Twiga Foods has been facing financial challenges as it strives to maintain its operations amidst a severe cash shortage.
Incentro Africa filed insolvency against the company for its failure to remit USD 261,878.75 for the provision of Google Cloud Services and Partner Service Funds under its Google Partners Funding Programme.
“Further take notice that failure to pay the aforesaid amount shall result in Incentro Africa Limited fling for liquidation order against you,” reads the notice.
Twiga Foods, however, keeping in mind that the insolvency notice expired on Monday, moved to court under a certificate of urgency to seek an injunction against the liquidation.
“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,” Twiga Foods says in its court papers.
“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.”
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.
Twiga Foods said it will invest more in technology to cut down operation costs during this tough period.
Mr Njonjo, last month told Nation’s 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 when we also secured a significant portion of our financing before the funds later became scarce. Cumulatively, we have raised Sh23.2 billion,” he said.
The court is expected to rule on whether Incentro Africa should continue with the liquidation process or not.
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