{
  "id": 14146662,
  "title": "After Koko’s collapse, Circle Gas faces Kenya’s carbon-credit test",
  "url": "https://urgent.news/2026/10/13/after-kokos-collapse-circle-gas-faces-kenyas-carbon-credit-test",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-13T07:08:28.000Z",
  "source": {
    "name": "TechCabal",
    "slug": "techcabal",
    "url": "https://techcabal.com/2026/10/13/circle-gas-carbon-revenue-kenya/"
  },
  "original_language": "en",
  "account": "Circle Gas, the UK subsidiary of Kenyan LPG distributor M-Gas, disclosed in its 2025 financial statements that it holds $67 million in contracted carbon credits awaiting delivery and $57 million in cash prepayments. The company's reliance on carbon credits underscores the financial risks faced by Kenya's clean cooking businesses, as government authorization can determine the actual value of these credits. In its September filings, Circle Gas reported a $39.3 million loss for 2025, with $1.1 million in cash and $156.7 million in net liabilities. To finance growth, the company needs about $28 million in new funding. Carbon credits play a crucial role in the economics of clean cooking businesses like M-Gas, as revenue from emissions reductions can support their affordable pay-as-you-cook models. However, the future of these credits is uncertain. Another Kenyan clean cooking company, Koko Networks, recently entered administration after the government refused to authorize the carbon credit sales on which its business depended. Circle Gas had received a \"Letter of Acceptance\" confirming that its carbon credit projects met eligibility criteria but still needs a \"Letter of Authorisation\" to transfer credits internationally. M-Gas announced in January 2026 that its clean cooking carbon project had received a Letter of Approval, but the exact document's identity remains unclear. Circle Gas's accounts reveal that it is still seeking authorisation, leaving the value and delivery of some contracted credits uncertain. The company's 2026 growth plans are contingent on securing additional funding, as its current valuation excludes the potential premium of authorized credits. Koko Networks' collapse highlights the risks associated with carbon credits, as the lack of authorization can leave businesses with substantial debts if they cannot sell the credits needed to sustain operations.",
  "summary": "Circle Gas lost $39.3 million in 2025, held $1.1 million in cash at year-end and reported net liabilities of $156.7 million. It needs about $28 million in new funding to finance its growth plans.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}