Wasoko Expands in East Africa Despite Legal Dispute, Prepares for MaxAB Merger
Wasoko, the Kenyan e-commerce company, is expanding its team and operations in Rwanda, Tanzania, and Kenya. Despite facing a legal dispute, the company is forging ahead with plans to merge with Egypt's MaxAB and integrate operations in Nairobi. It has also denied reports of closing down in Rwanda.
Wasoko has recently inaugurated a new warehouse in Rwanda and is actively recruiting for partnership and procurement associates in the country. The company is also preparing for its first shipment of Egyptian news to Rwanda, indicating its commitment to expanding its product range.
In Kenya, Wasoko is merging with MaxAB, with both companies progressing as planned within the integration timeline. However, MaxAB has overturned some of Wasoko's earlier decisions, including reopening distribution centers in Kenya. Meanwhile, Wasoko has engaged new suppliers like Movit and Oxi for its Rwanda operations, demonstrating its efforts to strengthen its supply chain.
The company is currently involved in a legal dispute with nine former employees over severance pay and stock options. The plaintiffs in this case include the company's former CEO Henry Njoroge and several investors.
Wasoko's expansion in East Africa continues despite challenges, with the company hiring new talent, engaging new suppliers, and preparing for new product lines. The integration with MaxAB is proceeding as planned, although some strategic decisions have been reversed. The legal dispute with former employees remains ongoing.
