NAIROBI, Kenya — Hundreds of thousands of Kenyan households are facing fresh uncertainty after KOKO Networks, a clean-cooking company specializing in ethanol fuel and smart stove technology, abruptly shut down its operations in the country.
Customers were informed of the closure through mass text messages sent early on Saturday, January 31, marking an abrupt end to what had become one of Kenya’s most visible clean energy experiments.
“Samahani KOKO customer, we regret to inform you KOKO is closing operations today. We will share the next steps soon. Asante for being a part of this journey,” read the message sent to users.
The shutdown is expected to directly affect at least 700 employees, with thousands more indirectly impacted across KOKO’s extensive supply, distribution, and retail network.
For many informal vendors and small retailers, KOKO fuel sales had become a steady source of daily income.
Dispute over carbon credits
According to the Financial Times, the collapse followed a prolonged dispute between the company and the Kenyan government over authorisation to trade carbon credits on international markets, a cornerstone of KOKO’s business model.
KOKO subsidised both its ethanol fuel and cooking stoves, selling refills at prices starting from as low as KSh 30.
Losses were offset through the sale of carbon credits generated by replacing charcoal and kerosene with cleaner-burning ethanol, a model widely promoted as both climate-friendly and socially inclusive.
However, uncertainty around regulatory approvals for carbon trading reportedly disrupted revenue flows, placing pressure on the company’s ability to sustain operations in Kenya.
A staple for low-income households
Before its closure, KOKO fuel had become a lifeline for many low-income urban and peri-urban households. Its pay-as-you-go system allowed customers to buy small quantities of fuel, making it a cheaper and more flexible alternative to Liquefied Petroleum Gas (LPG) and electricity.
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Environmental advocates had praised the model for reducing reliance on charcoal, a major driver of deforestation, while also lowering indoor air pollution, which disproportionately affects women and children.
KOKO’s dense network of fuel dispensers, often located in neighbourhood kiosks, ensured accessibility even in underserved areas, reinforcing its appeal among households excluded from mainstream energy infrastructure.
Wider implications for clean energy transition
The shutdown raises broader questions about the future of clean cooking initiatives in Kenya and across Africa, where governments have committed to reducing charcoal use while expanding access to affordable alternatives.
Kenya has positioned itself as a regional leader in climate finance and carbon markets, but the KOKO case highlights persistent regulatory and policy uncertainties that can undermine private-sector innovation.
Energy analysts warn that without clear and predictable frameworks for carbon trading and clean energy incentives, similar ventures may struggle to attract long-term investment.
For now, customers remain in limbo, awaiting guidance on refunds, unused balances, and the fate of KOKO’s proprietary stoves, underscoring the human cost of policy and commercial disputes in the energy transition.
