Kenyan startup Twiga Foods has entered administration amid financial turmoil, joining a group of 13 once-promising ventures that have collapsed over the past five years after raising capital in excess of Sh93 billion.
The business failures, including that of Koko Networks, Lipa Later and Copia, highlight the heavy losses that financiers and investors, mostly venture and private equity firms based in Western countries, have suffered.
The collapse of the young businesses has also rendered thousands of Kenyans jobless, with the firms typically engaging in a hiring blitz with a plan to gain scale and reach profitability.
Twiga Foods operated a business-to-business (B2B) marketplace that sourced farm produce directly from farmers and delivered it to urban retailers.
Mohamed Mohamed of Maawiy Financial Advisory Limited was appointed administrator of GT Flow Limited, formerly known as Twiga Foods One Limited, on August 17.
Twiga Foods attracted $185.4 million (Sh24 billion) from investors, according to the global business database Crunchbase. Its backers include the French investment firm Creadev.
It is the latest in a series of heavily funded Kenyan startups that have collapsed, been placed under administration, or wound up after struggling to raise more money, achieve profitability, or cope with difficult market conditions.
A Business Daily analysis shows Twiga Foods is among 13 ventures to collapse in the past five years after collectively raising $717.5 million (Sh93 billion) from investors.
E-commerce startup Copia, which raised $123 million (Sh15.9 billion), failed to secure additional funding as 2024 began, putting it under financial strain.
Copia provided a platform for rural consumers to order products delivered through agents.
In May 2024, the company cut more than 1,000 jobs and warned of a looming shutdown before being placed under administration.
Copia was backed by the Kenyan venture capital firm Enza Capital and UK’s Lightrock.
Clean cooking startup Koko Networks, which had raised more than $100 million (Sh13 billion), was placed under administration in February 2026 on the brink of bankruptcy.
Koko Networks sold heavily subsidised bioethanol stoves and fuel to low-income households.
The company recouped losses through carbon credit sales in global compliance carbon markets.
Koko Networks filed for administration after Kenyan authorities refused to issue it a letter of approval to sell carbon credits, leaving over 700 direct staff and thousands of refilling agents jobless.
Its investors include Microsoft’s Climate Innovation Fund and French asset manager Mirova.
Another casualty has been Lipa Later, a technology credit venture that raised $16.6 million (Sh2.1 billion) and was placed under administration in March 2025 amid undisclosed financial woes.
Lipa Later was backed by Cauris Finance and Lateral Frontiers and had over 200 staff and a network of about 1,000 agents.
Gro Intelligence, an agriculture and climate data company, raised $117.7 million (Sh15.2 billion) before shutting down operations in June 2024.
The company provided AI-powered data analytics, satellite imaging, and predictive models focused on agriculture and climate risk.
In March 2024, the company laid off 60 percent of its workforce before shutting down operations after failing to secure sufficient capital.
Carmaker Mobius Motors shut down operations in August 2024 and sent over 40 workers home amid mounting debts and a multi-million-shilling tax dispute, which pushed it into voluntary liquidation.
The company sought to build affordable, rugged SUVs designed for African roads.
Read: Cash burn, weak business models drive Kenyan startup failures
By August 2020, it had a debt of Sh649.2 million and a shareholders’ deficit of Sh389.1 million. The company had raised $56 million (Sh7.3 billion) from investors such as Kepple Africa Ventures.
Mobius was later acquired in bankruptcy in 2025 by Silver Box, a Middle Eastern firm.
Agritech startup iProcure, which raised $17.1 million (Sh2.2 billion), was placed under administration after filing for bankruptcy in April 2024.
The business-to-business (B2B) platform connected agricultural input suppliers directly with local agro-dealers.
Logistics startup Sendy, which raised $24.7 million (Sh3.2 billion), closed in 2023 after running out of money and failing to find a buyer, sending home over 200 staff.
Sendy operated an app linking delivery drivers with customers. Its investors include the Toyota Tsusho Corporation.
Another B2B e-commerce startup, MarketForce, raised $84.1 million (Sh10.9 billion) before winding up in April 2024.
The company enabled informal retailers to order fast-moving consumer goods from distributors and manufacturers. It was backed by V8 Capital Partners, among others.
Kune Foods shut down in June 2022, barely a year after starting operations. It offered ready-to-eat affordable meals and had raised $1 million (Sh129 million).
Wefarm, which raised $32 million (Sh4.1 billion), shut down in 2022 due to difficult market conditions and scaling challenges. Wefarm operated a farmer-to-farmer digital network that enabled users to share information via SMS.
E-commerce firm Zumi shut down in March 2023 after raising $1 million (Sh129 million).
Notify Logistics also shut down in August 2022 after raising $374,000 (Sh48.4 million).
The failures have come despite large investments in Kenyan startups over the past decade.
In 2025, Kenya was Africa’s leading venture capital destination, when startups raised $984 million (Sh127.5 billion), according to the startup funding tracker Africa: The Big Deal.
For venture capitalists, however, startup collapses are factored into the funding strategy, where a small number of successful companies pay for a high rate of failures.
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