Finance Director CPA Jackson Kitheka on The Strategy for Growth
For over seven decades, Twiga Chemical Industries has been a foundation of Kenyan agriculture. Its transformation from a distributor to a manufacturing powerhouse hasn’t been accidental; it’s been driven by a deliberate and savvy financial strategy. In this interview, CPA Jackson Kitheka, Twiga’s Finance Director, discusses how smart capital allocation has fuelled the company’s journey. CPA Kitheka provides a candid look
Over the years, how has Twiga Chemical Industries evolved in its core businesses of crop protection, animal health, consumer products, and vegetable seeds?
• Twiga Chemical Industries Limited (Twiga) was incorporated on 18th May 1949, then referred to as AECI (EA) Ltd, a subsidiary of Imperial Chemical Industries plc (ICI) of the UK. At that time, the core business was sourcing and distributing crop protection products, among other things.
• In 1999, the company commenced its toll manufacturing activities to formulate and repack crop protection and animal health products. The same year, it obtained ISO 9001 Certification.
• The Animal Health division started operations in the year 2000 and has grown to be among the top five animal health/veterinary products distributors in Kenya.
• The consumer business was started in the 1990’s while the Vegetable seeds business was started in 2020
• Twiga is now a leading manufacturer and distributor of crop protection chemicals and animal health products in Kenya. Its manufacturing facility, “Toll Manufacturing Centre” (TMC), is capable of formulating and packing crop protection chemicals (insecticides, fungicides, herbicides, etc.), mineral supplements for animals, aerosols, and repacking all these products. The company uses Systems Applications & Products (SAP) ERP to run its operations, including production.
• TMC tolls for the global leaders in crop protection. These multinationals approved the tolling site after stringent audits by their international staff. They use the facility to supply their products to East and Southern Africa.
• Twiga’s laboratory is ISO 17025:2005 accredited; it is the only crop protection company in East Africa to have this distinction. In 2016 and 2017, Twiga won the Company of the Year Award (COYA) for Quality & Productivity. Further, in 2017, Twiga won the overall COYA Award. These awards reflect the deeply entrenched nature of Twiga’s Quality, Health, Safety and Environment-related programs.
• Over the years, we have expanded our product portfolio in crop protection, animal health, consumer products, and vegetable seeds, increasing market share and presence in Maize, Potatoes, Tomatoes, Coffee, Flowers/export vegetables, General Horticulture and field crops, Animal Genetics (Artificial Insemination), Livestock disease management (Injectables), Internal and external parasite control, Poultry products, and Hybrid seeds.
From a financial perspective, what have been some of the company’s proudest achievements in the last decade?
• Establishing a Robust distribution network/customer base to support the Business growth and expansion, which has been realised through an Enhanced Partnership Scheme for Distributors.
• Invested in a Call Centre at the Head office to support the Stockist Partnership Scheme (SPS). This has led to a powerful bond with resellers/stockists by building Stockists’ loyalty to Twiga brands/ Products.
• Invested in Twiga Farmer Outreach Programs (TFOPs) in key areas, e.g., Potato and Rice, which has also led to growth of our market share in the pockets where these crops are grown
• Partnership with global suppliers and manufacturers for a long time at favourable trade terms.
• On top of all these, in 2016 and 2017, Twiga won the Company of the Year Award (COYA) for Quality & Productivity. Further, in 2017, Twiga won the overall Company of the Year Award (COYA).
Twiga is in a highly competitive and regulated industry. How has the finance function supported the company in navigating economic and regulatory challenges?
• Twiga operates within the framework established by various government agencies, including PCPB, VMD, KEBS, and NEMA. All investments are made within the regulatory requirements.
• Key investments in the latest ERP and IT systems have enhanced our competitiveness within the industry.
• Apart from providing financial information to assist in business decision-making, the finance function advises on various financial issues affecting the company. For example, the finance function offers advice on sources of affordable finance, the management of working capital, and ways of improving cash flow. The finance function also significantly contributes to business plans and strategies to improve return on capital.
• Funding the core Divisions in New product development initiatives in line with emerging trends and new regulatory requirements.
Looking back, what were some of the key investment decisions that have shaped Twiga’s growth and stability?
• Over the years, Twiga has made key investment decisions that have ensured its growth, stability, and top-notch quality of products. To mention a few:
• New HPLC lab equipment – Increased our testing accuracy and capacity, ensuring product quality and regulatory compliance.
• New GC Machine – Expanded our analytical capabilities for volatile compounds, improving quality control.
• New UV Spectrophotometer – Enabled faster and more reliable routine analysis, boosting our lab productivity.
• ISO / IEC 17025 Accreditation – Build customer trust and open opportunities in regulated markets through certified lab competence
• Selective Herbicide Plant – Diversified product offerings and tapped into new agrochemical revenue streams.
• VFFS Bosch Machine – Automated packaging for increased speed and consistency, reducing labour and waste.
• VFFS Sandiacre Machine – Added packaging capacity, supporting high-demand production lines.
• Scissor Lift – Improved safety and efficiency in warehouse operations.
• Main ETP Upgrade – Ensured compliance with environmental regulations and supported sustainable operations.
• Brick Press Upgrade (5Kg & 2Kg with Centre Hole): TMC expanded its product range by manufacturing the 5Kg brick locally and also improved the product brand for the 2Kg brick to one with a centre hole.
• Mineral Plant dust extraction Unit Upgrade – Improved yield and efficiency, by creating a more conducive working environment.
• New Battery-Operated Reach Truck – Increased warehouse efficiency in material handling
• Investment in staff training and capacity building in line with industry trends.
How has the company balanced profitability with its responsibility toward sustainability and environmental stewardship?
• This is an area of concern to modern businesses. The responsible use and protection of the natural environment through conservation and sustainable practices enhance ecosystem resilience and human well-being. Businesses can no longer overlook their environmental impact, and companies that balance profitability and environmental responsibility improve their brand reputation and gain a competitive edge. In addition, innovations can lead to operational efficiencies and reduced waste, contributing to overall sustainability.
• To this end, Twiga has integrated eco-friendly practices within its operation, like an Effluent treatment plant (ETP), use of renewable energy, Tree planting activities in various parts of the country, safe use training to farmers for responsible use of pest control products.
Twiga pays close attention to sustainability and human health. How do financial strategies reflect these commitments?
• Twiga has integrated environmental, social, and governance (ESG) factors into its financial strategies, which include investment decisions and business practices. This involves directing financial resources towards environmentally friendly projects, promoting sustainable resource management, and ensuring financial systems support public health initiatives.
What role does the finance department play in ensuring that investments in crop protection and animal health products also meet global safety and environmental standards?
• The government highly regulates the market for crop protection and animal health products. In Twiga, compliance is a role under the finance department. The finance department ensures that resources are allocated for the trials and registrations of these products before their launch into the market.
How does Twiga measure the financial value of its sustainability initiatives, such as reducing the environmental impact of its operations and promoting safe farming practices?
• We look at the return in terms of sales growth, cost reduction, and brand awareness at the farm level.
Agriculture in Africa faces climate change, pests, and market volatility. How is Twiga positioning itself financially to support resilient food systems?
• Supporting resilient food systems involves a multifaceted approach focused on strengthening local food production, improving infrastructure, and promoting sustainable practices. This includes diversifying crops, enhancing soil health, and building climate-resilient infrastructure to mitigate risks like drought and floods. Furthermore, supporting local economies through initiatives like promoting local food is crucial.
• At Twiga, we have invested in training farmers on the best agricultural practices and collaborated with various NGOs to ensure farmers mitigate the risks related to climate change, pests, and market volatility.
• Investment in research and development is also key to ensuring that new and emerging product categories are introduced to farmers to address the challenges of new pests and diseases that cannot be controlled with existing/older molecules.
What lessons has Twiga learned from past agricultural disruptions, and how have those informed its financial planning for the future?
• Climate change has led to unprecedented droughts and floods worldwide. In Kenya, these have been the major agricultural disruptions. Climate change has also led to the emergence of new pests and disease challenges in crops that were not there before. This means that our technical department must continuously be on the lookout for such opportunities to avail appropriate products to deal with such issues.
• We are very aware of these risks and have incorporated mitigation strategies to counter them. We have aligned our business and allocated more financial resources towards irrigated pockets and safeguarded crops like flowers, export vegetables and corporate farming, e.g., coffee and avocado farming.
Looking ahead, where do you see the greatest opportunities for Twiga’s growth in the next 5–10 years?
The greatest growth opportunities for Twiga in the next 5 – 10 years are in:
• Biological pesticides and stimulants,
which will potentially replace the
traditional conventional chemicals
• Vegetable seeds business, especially
hybrid Seeds
• Speciality fertilisers such as slow
release/coated fertilisers and
Biostimulants
• Animal Health business to include
poultry vaccines and feeds
• Consumer products
• Regional geographical expansion.
How is Twiga planning to expand or strengthen its position in the vegetable seeds and consumer products segments?
The Vegetable seeds market is moving towards the hybrid varieties:
• Twiga focuses on identifying the best hybrid seeds across crops that will suit the Kenyan weather.
• Once the hybrid seeds are identified as per crop, the best supplier will be engaged & seeds will be brought into Kenya
• The existing structure will be used to distribute & engage farmers to buy these hybrid seeds.
• Twiga will actively generate saplings from seeds and encourage farmers to buy them. • The Consumer products segment growth will focus on the following:
• The current offering is one SKU of Mandazi Mix and two SKUs of Supa Kill (three items). We plan to expand and grow our product range to 30 SKUs, which will be sold to supermarkets with more than 300 stores.
• We also plan to avail our range of consumer products in the neighbouring countries.
As Finance Director, what are your top priorities to ensure the company remains competitive, innovative, and financially stable in the long run?
• A company should prioritise a culture of innovation, strong customer relationships, operational efficiency, and strategic resource allocation to ensure long-term competitiveness, innovation, and financial stability. These principles should be supported by a commitment to sustainability and a willingness to adapt to market changes. I am committed to these pillars, and these are my top priorities at Twiga.
How does Twiga plan to integrate new technologies—such as digital agriculture, AI, or biotech—into its financial and operational strategy?
• Technology is key to driving business into the future. Twiga is looking at integrating all its core functions into one system.
• We plan to use AI-driven demand forecasting to optimise our inventory, manage stockouts, and enhance distribution timelines.
• We also plan to integrate product traceability by linking our products to farm usage for safety compliance and farmer insights. We also plan to engage in collaborative R&D to develop improved seed varieties or organic pest-control solutions
Finally, what legacy would you like to leave in Twiga’s finance function as you look toward the future of the company and the agricultural sector in Africa?
I want to leave a strong foundation of financial practices, ethical conduct, and a positive impact on the organisation that will endure beyond our generation. This includes effective cash flow management, accurate financial reporting, adherence to regulations, and fostering a culture of financial responsibility.
