Twiga Foods, a Kenyan agri-tech company, is relying on an aggressive cost-cutting plan to continue operating despite a protracted financial shortage.

In order to sustain its operations, the company has raised a total of $160 million (Sh23.2 billion at the current currency rate) since its founding. This has led to the continuous restructuring.

“We need about 40 percent less cost than where we are today. I’m not talking about people, I’m talking about general costs. We have established that it is actually feasible to run the same operations we do at 40 percent less cost,” he said.

According to Peter Njonjo, managing director of Twiga Foods, the revised approach aims to reduce the company’s overall operational costs by up to 40%, including cutting a third of its permanent personnel by next month.

All 267 of the total 810 employees have received their redundancy notices, Mr. Njonjo said, and he added that the process has been conducted in compliance with all established ethical standards.