NAIROBI, Kenya, Sep 14 – GT Flow Limited, formerly known as Twiga Foods One Limited, has been placed under administration as the company moves to recover debts owed to suppliers and other creditors.
Mohamed Mohamed has been appointed administrator of the firm and has taken control of its assets and management affairs.
A Gazette Notice published said the powers of the company’s directors to deal or transact with its assets have ceased unless they obtain express permission from the administrator.
“Moving forward, all matters, operational or otherwise pertaining to the affairs of the Company shall be directed to the Administrator or their authorised representatives,” the notice said.
The development comes amid financial challenges facing companies associated with the Twiga Foods ecosystem.
In March, a petition was filed at the High Court seeking the liquidation of Twiga Tatu SEZ Limited over outstanding debts.
Under Kenya’s Insolvency Act, creditors can petition the court to liquidate a company that is unable to pay its debts. If a liquidation order is granted, the company’s assets can be placed under the control of a court-appointed liquidator and sold to settle liabilities.
Twiga Tatu SEZ Limited is associated with the wider Twiga Foods ecosystem, a Nairobi-based business-to-business food distribution platform founded in 2014.
Twiga Foods built a technology-driven supply chain connecting farmers with urban vendors and attracted tens of millions of dollars in funding from international investors, including development finance institutions and private equity firms.
The company’s financial difficulties come against a backdrop of tighter funding conditions for African startups, with venture-backed businesses facing increased pressure to cut costs, restructure operations and move towards profitability.
