Marketforce Technologies, once a promising name in Africa’s B2B e-commerce space, has been ordered by a Kenyan court to pay KES 2.1 million ($16,000) to a former employee for wrongful termination.

This ruling comes nearly a year after the Y Combinator-backed startup shut down its flagship marketplace, RejaReja, casting uncertainty over its future. Meanwhile, co-founder Tesh Mbaabu has moved on, launching a new social commerce platform called Chpter.

Tom Maina Chege, a former product manager at Marketforce, took the company to court after being laid off in July 2023. He argued that the termination was unlawful because the required 30-day notice period wasn’t fully observed, and the company failed to inform the Labour Office as required by Kenya’s Employment Act of 2007. At the time, Chege was earning a monthly salary of KES 200,000 ($1,550). He sought compensation for unpaid leave, notice pay, severance pay, salary arrears, and general damages, amounting to KES 1,560,870 ($12,000).

Since Marketforce did not contest the case, Judge C.N. Baari ruled in favor of Chege, declaring the redundancy both procedurally and substantively unfair. The court awarded him KES 1,316,547 ($10,000) in terminal dues and an additional KES 800,000 ($6,000) to cover compensation and legal costs.

This legal battle brings to light Marketforce’s deeper struggles, which former employees say started in late 2022. Mass staff departures disrupted operations and weakened relationships with major distributors. One former employee, speaking anonymously, explained how Marketforce had a credit arrangement with major manufacturers, allowing them to acquire stock and pay later. However, as internal challenges mounted and key employees left, these agreements fell apart.

At the same time, Marketforce faced severe cash flow issues, leading to delayed salaries and pay cuts of up to 50% for non-tech employees. Despite securing over $40 million in funding from investors like Reflect Ventures, Greenhouse Capital, and Century Oak Capital, the company’s sudden exit from the B2B e-commerce sector in 2024 has left its current state unclear.

While Marketforce’s fate remains uncertain, its co-founder Tesh Mbaabu has moved forward with Chpter, a social commerce platform helping businesses sell via social media. In September 2024, Chpter raised $1.2 million in a pre-seed funding round led by Pani, an Africa-focused investment firm co-founded by former Cellulant CEO Ken Njoroge. The company has also joined the Safaricom Spark and Norrsken Accelerator programs.

Whether Marketforce will attempt a comeback is still unknown, but for now, its focus seems to have shifted elsewhere.