KOKO Networks Limited, a Mauritian company with a fully owned subsidiary in Kenya, generates carbon credits by selling sustainable bioethanol cookers and fuel to households and businesses. The company is at the forefront of transitioning towards cleaner energy solutions and reducing reliance on charcoal. So far, they have empowered over 1.1 million homes with bioethanol cooking fuel.
Conveniently distributed through an intricate network of high-tech KOKO Fuel ATMs located in many urban Kenyan corner stores, and what’s more, the generated carbon revenues are ingeniously rebated to households. This acts as a powerful energy subsidy not derived from government sources, making it possible for families, regardless of their financial situation, to embrace this eco-friendly change.
KOKO’s vision is backed by Rand Merchant Bank, which provides a scalable long-term debt facility linked to future carbon credit cash flows from carbon credit generation. This strategic partnership empowers KOKO to advance its climate objectives, combat deforestation, and reduce household air pollution in Africa. This initiative is particularly crucial when considering that over 900 million individuals in Africa rely on polluting fuels for cooking, leading to deforestation on a massive scale and contributing significantly to household air pollution—a factor responsible for over 600,000 deaths annually. This scenario also parallels the global aviation industry’s greenhouse gas emissions, highlighting the urgency and importance of KOKO’s mission.
Cygnum Capital’s expertise in financial and structural advising has been instrumental in guiding KOKO Networks towards achieving their climate-focused ambitions.
Appleby is honoured to have contributed to this project, particularly in navigating the complexities of the Mauritian legal aspects of the financing transaction, through meticulous review of the Mauritian security package and thorough validation of all conditions precedent in the successful realisation of this transformative initiative.
At Appleby, we are firm believers in the power of innovation to drive sustainable change and we are proud to be part of this monumental effort by KOKO Networks to forge a greener future for African communities and contribute to the global fight against climate change.
The Appleby Mauritius team comprised of Partner Farzanah Nawool and Associate Suhaylah Juman.
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