Clean Energy Firm KOKO Shuts Down Operations in Kenya, Leaving Thousand Jobless

Hundreds of employees have lost their jobs after clean-energy company Koko Networks suddenly ended its operations in Kenya, blaming unresolved regulatory issues in its long-standing dispute with the government.

The shutdown, which took effect on January 31, surprised both workers and customers, bringing an abrupt end to one of Kenya’s leading clean-cooking projects.

Customers first learned about the closure through a mass text message sent early Saturday morning. In the message, the company apologised for the inconvenience and announced that it was shutting down its operations, promising to communicate further steps later.

“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.” a message from KOKO

Koko Networks’ exit is largely linked to its inability to obtain government approval to trade carbon credits in international markets. These carbon credits were a key source of income that enabled the company to subsidise bio-ethanol fuel and affordable cooking stoves for low-income households.

Without the required Letter of Authorisation from Kenyan authorities, the company’s business model became financially unsustainable, forcing it to halt its activities in the country.

At its peak, Koko Networks served more than one million households through thousands of automated fuel dispensing stations nationwide. The closure is expected to directly affect around 700 employees and indirectly impact suppliers and partners. It has also raised concerns that many households may return to using charcoal and kerosene due to rising fuel costs and limited alternatives.