Uncertainty for Thousands as KOKO Shuts Down Operations in Kenya

Hundreds of thousands of Kenyan households have been left facing uncertainty following the sudden closure of clean-cooking fuel manufacturer KOKO Networks in the country.

Customers were informed of the shutdown on Saturday morning, January 31, through mass text messages sent by the company.

In the message, KOKO announced it was ceasing operations with immediate effect but did not disclose the reasons behind the decision.

“Samahani KOKO customer, we regret to inform you KOKO is closing operations today. We will share next steps soon. Asante for being a part of this journey,” read the message sent to customers.

The abrupt announcement has sparked concern among users who rely on KOKO’s ethanol fuel for daily cooking, particularly in low-income households where the product had become a common and affordable alternative to charcoal.

Earlier reports by British publication Financial Times indicated that the collapse of KOKO’s operations stemmed from a dispute with the Kenyan government over the sale of carbon credits on international markets.

According to the report, the government declined to authorise KOKO’s push to trade carbon credits, which formed the backbone of the company’s business model.

KOKO Networks had relied on revenue generated from carbon credit sales to subsidise the cost of its cooking stoves and ethanol fuel.

The company sold its products to consumers at heavily discounted rates, with refills priced from as low as KSh30, while covering the financial gap through carbon credit income.

With the closure, at least 700 Kenyans employed directly by the company are expected to lose their jobs, adding to the economic impact of the shutdown.

KOKO’s ethanol fuel had gained popularity for being efficient, affordable, and environmentally friendly. The fuel reduced dependence on charcoal, easing pressure on forests while also lowering harmful indoor air emissions linked to traditional cooking methods. Its wide network of vendors across the country made the product accessible even in remote areas.

At its launch, KOKO Networks said its mission was to combat deforestation by helping households transition from charcoal to cleaner cooking fuels.

The company maintained that liquefied petroleum gas and electricity remained costly and heavily reliant on government subsidies, making ethanol a more practical option for low-income families.

By linking cleaner cooking to carbon markets, KOKO argued it was supporting large-scale forest conservation efforts in Africa while reinvesting the proceeds to expand access to clean energy.

The shutdown now leaves customers, employees, and environmental advocates awaiting clarity on the next steps and the future of clean-cooking solutions in Kenya.