The Lower Eastern Times Opening The Third Eye
Related Articles
Clean cooking company Koko Networks has ceased operations in Kenya, cutting off services to thousands of households that depended on its ethanol-based cooking fuel.
Customers were notified of the shutdown through a short text message sent on Saturday, in which the company apologised and said it would communicate the next steps at a later date.
Click here to join our WhatsApp Channel
The move ends nearly ten years of Koko’s presence in the Kenyan market, where it had branded itself as an affordable and cleaner alternative to charcoal and kerosene, especially for low- and middle-income urban families.
Sources within the industry attribute the closure mainly to difficulties in generating income from carbon credits, which formed a key part of Koko’s business strategy. Revenue from these credits was used to keep fuel prices low and maintain the firm’s distribution network.
Prolonged delays in obtaining government clearance to sell carbon credits on international markets are said to have put pressure on cash flows, leaving the company unable to cope with increasing operational costs and regulatory uncertainty.
Over the years, Koko invested heavily in infrastructure, installing hundreds of fuel dispensing units in Nairobi and other towns, and distributing smart cookers connected to its digital refill system.
The shutdown is expected to impact thousands of users, as well as employees and last-mile agents who ran the dispensing network.
Energy experts caution that Koko’s departure may drive some households back to charcoal and kerosene, potentially reversing progress made in clean cooking adoption and public health improvements associated with lower indoor air pollution.
Beyond the customer message, the company has not released a comprehensive statement, only indicating that further guidance will be provided. Customers are now waiting for information on refunds, remaining fuel balances and what will happen to company-issued cookers.
Koko’s exit underscores the wider hurdles confronting clean cooking and climate-oriented startups in Kenya, particularly those reliant on carbon markets within a changing regulatory environment.
