Kerosene Closes: Cooking Oil Company Closes Containers in Kenya

• Koko Networks has closed operations in Kenya, leaving hundreds of thousands of customers in limbo and at least hundreds of employees facing job losses.
• The closure, announced via text message on January 31, follows a dispute with the government over permits to sell carbon products, the backbone of its trading system.
• Originally hailed for providing cheap and environmentally friendly ethanol fuel that reduced dependence on charcoal, Koko’s decline threatens an important livelihood for low-income households

Hundreds of thousands of customers are now facing uncertainty as Koko, a producer of pure cooking oil and ethanol products, is going out of business in Kenya.

On Saturday morning, January 31, customers were notified of the closure via text message, with the company thanking them for their support.

“Sorry KOKO customer, we regret to inform you that KOKO is closing operations today. We will share the next steps soon. Thank you for being a part of this journey,” said the text message sent to the customer.

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According to the Financial Times, the collapse was due to a dispute with the Kenyan government over approval to sell carbon credits on international markets, a key pillar of Koko’s trading system.

The closure is expected to leave at least 700 workers out of a job, with thousands more indirectly employed by the business.

Coconut oil had become a staple in many low-income households, praised for its affordability, efficiency, and environmental friendliness.

With a starting price of just KSh 30, ethanol refills reduce dependence on charcoal, reduce deforestation, and reduce indoor pollution, while a wide network of vendors ensures access even in remote areas.

The company sold stoves and fuel at subsidized rates, offsetting losses through the sale of carbon credits, and positioned itself as a viable alternative to expensive gas and electricity.

Its mission was to wean households off charcoal while supporting the conservation of Africa’s forests, reinvesting the proceeds of carbon credits to expand access to clean fuel for vulnerable families.

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Source: TUKO.co.ke