Kenya’s Koko shuts down after carbon credit dispute with government

Kenya’s clean cooking startup Koko Networks shut down operations and laid off its entire 700-person workforce after the government rejected a Letter of Authorisation (LOA) needed to sell carbon credits internationally, which funded its subsidized biofuel sales to 1.5 million low-income households. The model sold bioethanol at KES 100/liter (vs. KES 200 market price) and stoves at KES 1,500 (vs. KES 15,000), relying on credit revenue despite $100M+ funding from investors like Microsoft Climate Innovation Fund and a $180M World Bank guarantee. The closure threatens reversion to polluting charcoal/kerosene, reversing deforestation gains, with Koko potentially filing a World Bank insurance claim alleging government breach.
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