Koko Networks, a company known for its eco-friendly ethanol cooking fuel, has announced the closure of its operations in Kenya, leaving hundreds of thousands of customers and employees in limbo. The shutdown, which was communicated to customers via text messages on January 31, 2026, marks the end of a promising venture that had been providing affordable, clean cooking fuel to low-income households.
The company’s collapse follows a dispute with the Kenyan government regarding the authorization to sell carbon credits—a key component of Koko’s business model. These carbon credits were intended to help the company offset operational losses by allowing them to trade credits on international markets. The loss of this key revenue stream has contributed to the company’s inability to continue operations. The closure is expected to lead to the loss of jobs for at least 700 direct employees, as well as many others in the supply chain.
Koko’s Role in Providing Affordable and Eco-Friendly Cooking Fuel
Koko Networks made a significant impact in Kenya by providing affordable ethanol-based cooking fuel that reduced the reliance on traditional charcoal. This initiative was particularly beneficial for low-income households, many of which were struggling with the high costs of gas and electricity. The company’s stoves and fuel were sold at subsidized rates, making them accessible to even the most remote areas of Kenya.
The ethanol fuel provided by Koko helped curb deforestation, reduce indoor air pollution, and lower health risks associated with charcoal and firewood use. With prices starting as low as KSh 30, it became a crucial resource for families looking for cleaner, more affordable alternatives to traditional cooking methods.
The Business Model Behind Koko’s Collapse
The company’s model was built around carbon credit sales, which allowed them to generate additional revenue. By reducing carbon emissions and promoting the use of clean fuel, Koko was able to sell carbon credits internationally to businesses and organizations looking to offset their carbon footprints. However, the Kenyan government’s failure to approve the necessary permits to sell these credits has left Koko without a vital revenue stream.
As a result, the company has faced financial difficulties, leading to its eventual closure. This development is not only a blow to the employees who are now facing job loss but also to the customers who have relied on Koko’s products as a lifeline for affordable, eco-friendly cooking fuel.
The Broader Impact of Koko’s Closure
The shutdown of Koko Networks is more than just a corporate failure—it’s a significant loss for many Kenyan households that have benefited from its affordable ethanol fuel. Koko’s closure highlights the challenges faced by companies in the clean energy sector, particularly those reliant on government support for carbon credit transactions.
With Koko no longer in operation, many low-income families may find themselves returning to more expensive and harmful alternatives, such as charcoal and kerosene. Furthermore, the company’s departure will likely affect environmental conservation efforts in Kenya, as Koko’s business model was designed to promote forest protection through carbon credit revenue.
The Future of Clean Cooking Fuel in Kenya
While the closure of Koko Networks has left a significant gap in the market, it also underscores the potential for other companies to step in and provide similar services. As the demand for affordable, sustainable cooking fuel continues to grow in Kenya, there remains an opportunity for other businesses to offer innovative solutions that address the needs of low-income households.
The government’s role in supporting such ventures, particularly in terms of facilitating carbon credit transactions, will be crucial to ensuring the continued growth of the clean energy sector in Kenya. The hope is that, despite the challenges faced by Koko, other companies can rise to the occasion and provide affordable, eco-friendly alternatives to traditional cooking fuels.
