Koko biofuel shutdown leaves Kenyan households without fuel

Koko Networks halted its bioethanol fuel distribution after failing to secure government approvals for carbon credits and import permits, leaving more than 3,000 outlets idle and many low-income households without affordable cooking fuel.

Koko Networks abruptly halted its bioethanol fuel distribution after failing to obtain a government letter that would allow it to sell carbon credits and secure import permits. More than 3,000 Koko fuel supply points across Kenya are reported idle. The company and Kenyan officials disputed the approvals for weeks before the company announced on Jan. 30 that its business model was financially unsustainable. Many low-income households and small vendors who relied on Koko now lack affordable alternatives. Known facts: - Koko stopped fuel distribution after not securing a government letter authorizing carbon credits and import permits. - Over 3,000 distribution points are reported to be out of service. - Koko said the lack of approvals made its carbon credit-linked financing and imports unsustainable, and the company announced a shutdown on Jan. 30. - Kenyan officials cited concerns about the credibility of carbon credits and related regulatory issues. Summary: The shutdown has left many households without access to low-cost bioethanol, risking a return to charcoal or more costly liquefied petroleum gas. Undetermined at this time.