$300 million investment, Koko Networks has announced that it will shut down operations in Kenya, leaving close to 700 job opportunities at risk.
Reports indicate that the company is closing down due to fuel distribution being stopped. Thousands of automated refill machines were switched off, and staff were instructed not to report to work. The closure was communicated through mass text messages sent to employees and customers in January.
Koko Networks has been innovating with the aim of providing affordable, clean bioethanol to Kenyan households, funding subsidized hardware through the sale of compliance carbon credits. However, this model has hit a wall.
Despite transitioning thousands of homes from charcoal to ethanol, Koko has been unable to monetize these efforts because the Kenyan government has yet to issue the necessary authorizations.
Despite reports of the company closing shop, the Financial Times says Koko may file a $179.6 million insurance claim with the World Bank’s MIGA, alleging breach of contract under the world’s first carbon-linked political risk cover.
Carbon credit experts had previously warned that gaps in statutory definitions and approval processes expose both investors and the state to costly disputes.
This new development puts the government to the test, highlighting the urgent need for robust carbon governance structures to strengthen climate action and regulatory policy in the country.
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