Govt blocked Koko carbon credits over monopoly fears
Trade Cabinet Secretary Lee Kinyanjui said Koko sought to claim Kenya’s entire carbon credit allocation, which would have locked out other local firms from accessing the global market. Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Kenyan government denied Koko Networks approval to sell carbon credits internationally due to concerns over potential monopolization of the market, leading to the company's exit from the country. This decision hindered Koko's ability to subsidize its bioethanol cooking fuel, making its business model unsustainable.
- Trade Cabinet Secretary Lee Kinyanjui stated that Koko sought to claim Kenya’s entire carbon credit allocation, which would have disadvantaged other local firms.
- The government declined to issue letters of authorization under Article 6 of the Paris Agreement, preventing Koko from trading carbon credits.
- Koko Networks operated in Kenya for nearly a decade, providing a cleaner alternative to charcoal and kerosene, and its closure raises concerns about households reverting to polluting fuels.
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Court Upholds Sh7 Fuel Levy; Govt Blocks Carbon Credits; Bankers Urge CBK to Hold Rate at 9pc - February 2026
The High Court upheld the Sh7 fuel levy hike, dismissing a petition that sought a refund for motorists for the increased road maintenance charge implemented in July 2024. The court ruled the government met constitutional standards for public participation. Separately, the Kenyan government denied Koko Networks approval to sell carbon credits internationally due to concerns over potential monopolization of the market. This decision hindered Koko's ability to subsidize its bioethanol cooking fuel, leading to its exit. In the financial sector, the Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the benchmark lending rate at 9 percent ahead of the Monetary Policy Committee (MPC) meeting. The KBA believes holding the rate will allow for the full transmission of previous cuts.
