Kenya's KOKO Secures Game-Changing Investment from Rand Merchant Bank

Kenya's KOKO Secures Game-Changing Investment from Rand Merchant Bank

By Staff Writer, 17 January 2024

Kenyan climate-tech startup, KOKO, has successfully secured an undisclosed amount of funding from Rand Merchant Bank (RMB), marking a significant milestone in its mission to revolutionize sustainable energy solutions in Africa.

KOKO addresses the demand for charcoal by supplying bioethanol cooking fuel to over 1.1 million homes.

The innovative distribution model involves a network of high-tech KOKO Fuel ATMs strategically placed in thousands of corner stores throughout urban Kenya.

This approach not only reduces reliance on traditional charcoal but also ensures convenient access to clean energy for households.

The unique aspect of KOKO's business model lies in sharing the carbon revenues generated with households.

This serves as a non-government energy subsidy, making it possible for even the most economically challenged households to make the switch to cleaner energy alternatives.

Rand Merchant Bank, which has been the lead mandated arranger and financier for KOKO's carbon financing solution, has now taken a step further by making a direct investment.

This move is expected to significantly propel KOKO's climate objectives and contribute to the expansion of its innovative platform across Africa.

Greg Murray, CEO, and co-founder of KOKO expressed enthusiasm about the partnership, stating, “We’ve been looking for an entrepreneurial banking partner that understands Africa, climate markets, and technology. We are proud to embark on this long-term partnership with RMB to help accelerate the expansion of KOKO’s platform across Africa.”

Phil Norton, carbon finance lead at RMB, shared the sentiment, expressing pride in supporting KOKO's rapid growth.

He highlighted the broader impact of the collaboration, stating, "As a pan-African investment bank, this deal fits well within our ambition to build a market-leading carbon trading and finance business operating across Africa, serving both existing and new clients.”

The partnership aims to bring more affordable and lower emissions energy to millions of people in Africa, contributing to the region's sustainable development goals.

Tom Jackson / Disrupt Africa

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