The sudden shutdown of KOKO Networks sent shockwaves across Kenya, catching both employees and customers completely off guard. By encouraging households to switch from charcoal or kerosene to bioethanol, KOKO reduced carbon emissions and earned carbon credits for every tonne of emissions avoided. The letter allowed KOKO to sell all carbon credits generated by its operations on international markets. Ultimately, the conclusion was that without government approval to sell carbon credits, the business was no longer viable. KOKO’s collapse also highlights the vulnerabilities facing climate-dependent business models in emerging markets, particularly those reliant on regulatory approvals and international carbon markets.

Source: The Star February 01, 2026 19:40 UTC