Thousands of Kenyan households have been left stranded following the abrupt exit of KOKO Networks from the local market, bringing an end to a model that had reshaped access to clean cooking fuel for urban and peri-urban consumers.
KOKO, which operated a network of smart fuel dispensers supplying ethanol-based cooking fuel, announced it would cease operations in Kenya through text messages send to customers and employees.
“Samahani, KOKO customer, we regret to inform you KOKO is closing operations today. We will share next steps soon. Asante for being a part of this journey,” reads the message send to customers on Friday, January 30, 2026.
Sources attribute the company’s closure to the Kenya’s government failure to authorize the sale of carbon credits, which are essential for subsidizing fuel costs.
The refusal denied KOKO access to carbon credit revenues, meaning it could no longer sell fuel and stoves at subsidised prices. Executives concluded that the company would be unable to meet its financial obligations, forcing a shutdown.
The decision dealt a blow to customers who relied on the company’s pay-as-you-go system for affordable and cleaner energy, particularly in low- and middle-income neighbourhoods.
For many users, KOKO was more than just another fuel supplier. Its ethanol stoves and digital refill stations offered a safer alternative to charcoal and kerosene, reducing indoor air pollution while easing the burden of cooking gas costs.
Ethanol refills were priced from as little as Sh30, while cookstoves were sold for about Sh1,500 making them significantly affordable for thousands of low-income households.
It is estimated that 1.5 million households relied on KOKO’s cheaper fuel. Additionally, the company had employed over 700 direct employees, including engineers, logistics staff, customer service workers, and corporate teams.
Small retailers and agents who hosted KOKO fuel ATMs have also been affected. Many had integrated the dispensers into their businesses, benefiting from increased foot traffic and commissions.
With the shutdown, these entrepreneurs face lost income and uncertainty, underscoring the ripple effects of the company’s departure across informal and small-scale commercial networks.
KOKO, an international technology company that provides clean ethanol cooking fuel and cooking products, was founded in 2014.
The company publicly launched its ethanol cooking fuel product in Nairobi in 2019 and a retail platform in 2021. As of August 2023, the company claimed it had amassed over 1 million households as customers.
Username sacco rolls out electric Boda Boda & Tuk-Tuk express loan for Kenyan youth
