Kenya's Koko abruptly shuts down after the government blocked its sale of carbon credits

Kenya's Koko abruptly shuts down after the government blocked its sale of carbon credits

Kenyan clean-cooking startup Koko Networks has shut down its operations in Kenya after the government blocked its sale of carbon credits. Koko sent mass SMS messages to customers on January 31, 2026, announcing that it was closing operations immediately. This closure has led to the layoff of the company's entire 700-person workforce, including those that depend on the company indirectly. According to TechCabal's discussion with one of the company's board of directors, the shutdown decision came after two days of high-level discussions at the company’s Nairobi headquarters, as senior leaders reviewed their options following the government’s refusal to grant a letter of authorisation (LOA) that underpinned Koko’s model of supplying affordable biofuels to low-income households. On Friday, FT reported that the clean energy startup was facing bankruptcy after the government’s refusal to grant a letter of authorisation (LOA) to sell carbon credits. The anonymous board member also …