The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, has issued a $179.6 million guarantee to KOKO Networks, a climate-tech firm operating in Kenya and Rwanda, to support the expansion of its clean-cooking fuel model in Kenya.
KOKO distributes bioethanol-based cookstoves and fuel to over 1.3 million low-income households, replacing polluting charcoal and wood. It operates a decentralized network of 3,000 fuel ATMs located in corner shops across urban neighborhoods. The model achieves an estimated 6 million tonnes of CO₂-equivalent annual emissions reductions.
KOKO Networks
KOKO leverages carbon credits from household fuel-switching as a non-government energy subsidy. Proceeds from carbon credit sales help subsidize the cost of cookstoves and fuel for low-income users. The initiative strengthens carbon markets, especially under Article 6 of the Paris Agreement, which allows countries to trade emission reductions.
The MIGA guarantee coverage covers breach of contract, expropriation, war/civil disturbance, and transfer restriction for up to 15 years. Specifically protects against risks tied to Paris Agreement-aligned carbon credit markets, making this MIGA’s first policy addressing such climate-related political risk.
The project aligns with the World Bank’s Country Partnership Framework for Kenya (2023–28), which prioritizes climate resilience. MIGA issued $2.7 billion in guarantees across 16 African countries last fiscal year, with 32% of gross issuance targeting clean energy. The guarantee showcases inclusive business models that drive climate adaptation, resilience, and financial innovation in emerging markets.
“We operate in highly regulated energy and carbon sectors… MIGA’s guarantees have enabled risk-exposed infrastructure to be built in emerging markets for over 40 years,”said Greg Murray, CEO, KOKO Networks.