This archive report was first published on 17 July 2019.
Kenya's high food prices have long been a concern, especially for urban dwellers who spend a significant portion of their disposable income on food. According to recent research, Kenyans spend 55% of their disposable income on food, a much higher percentage than their South African and UK counterparts, who spend 16% and 8% respectively.
So, why do Kenyans pay so much for food despite the country's large agricultural sector? The answer lies in inefficient food production, waste due to poor handling, and passive intermediaries.
Peter Njonjo, CEO and Co-founder of Twiga Foods Limited, is working to address this issue. His company uses technology to connect farmers and vendors, reducing the cost of food for urban dwellers.
Twiga sources fruit and vegetables from over 17,000 farmers and delivers directly to 3,000 vendors in Nairobi and its environs. This efficient supply chain ensures that farmers receive guaranteed markets, transparent pricing, and agronomy support, while vendors get fair prices and free delivery with assured food safety.
As Peter Njonjo explained, 'The Twiga Foods platform uses mobile phone-based technology to aggregate market participants and match supply and demand. Through Twiga's m-commerce platform, vendors can order both fresh and processed food as and when needed.'
Twiga has grown rapidly since its inception in 2014, employing close to 500 people and leading the charge on food safety in Kenya. The company is also expanding its offerings beyond bananas to include other foodstuffs like potatoes, onions, and tomatoes.
For a company that started by focusing on bananas, the future looks bright. Twiga aims to continue expanding its retailers, lowering food prices through its work with farmers and food manufacturers, and providing value-added services like working capital financing and enhancing market access to all players in the ecosystem.
