President William Ruto’s economic adviser, David Ndii, has explained the closure of Koko Networks’ operations in Kenya, saying that multiple economic and regulatory factors contributed to the company’s exit from the market. His remarks came after the clean‑cooking technology firm ceased operations following a dispute with the government over carbon credit sales.
Koko Networks was a venture‑backed technology company that operated in Kenya and other East African countries, offering clean ethanol cooking fuel and related products. The business model was designed to provide a safer, environmentally friendlier alternative to traditional fuels, supplying households with ethanol‑based cooking solutions. Thousands of Kenyans had adopted the technology as part of efforts to reduce harmful emissions and indoor air pollution.
Last week, Koko announced it was shutting down its operations in Kenya after failing to resolve a dispute with the government over the sale of carbon credits, which were central to its revenue strategy. Without access to income from these credits, the company could no longer sustain its operations at subsidised prices, a core part of its business model.
Responding to concerns about the abrupt closure, Ndii said that the situation was complex and driven by several overlapping issues. He pointed to challenges related to international climate agreements, questions about the integrity and market acceptance of cookstove‑linked carbon credits, the regulatory environment for investors, carbon market regulations, transparency concerns about Koko’s business model, and what he described as diplomatic interference.
When asked whether the government could have intervened to prevent the shutdown — given that Koko provided cooking solutions to many citizens and created jobs — Ndii replied that it was too late to avert the outcome. He used the analogy, “Even good doctors lose patients,” to underline that even well‑intentioned enterprises can fail when structural and external challenges converge.
Reports indicate that Koko had previously reached an agreement with the World Bank’s Multilateral Investment Guarantee Agency (MIGA), which would require the state to compensate the company in cases where government interference harms business operations. This arrangement suggests potential financial implications for the government as Koko or its investors seek redress.
Koko’s shutdown marks a significant moment in Kenya’s clean‑energy and climate innovation space. The company’s model had hinged on revenue from carbon credits to subsidise fuel and equipment, making clean cooking more accessible for households. The unresolved dispute over regulatory approvals for carbon credit sales is seen as a key factor in the collapse of operations, affecting both customers and employees who relied on the business.
Image by Mtaa Wangu
