Thousands of households that adopted bioethanol cooking fuel are uncertain about their next steps after KOKO Networks abruptly suspended its operations in Rwanda.
The company, which distributes bioethanol through neighbourhood retail partners known as "KOKO Points”, informed customers through a brief message that it had paused activities, without explaining the reasons or indicating when services would resume.
"Our customer, we have paused activities. We apologise for any inconvenience this may cause. We will soon inform you about the next steps. Thank you for your patience,” the message read.
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The suspension follows months of disruptions in the supply of bioethanol stoves and fuel to more than 25,000 customers, The New Times has learnt.
KOKO Networks entered the Rwandan market in 2022, offering bioethanol as an affordable and cleaner alternative to traditional cooking fuels such as charcoal and firewood.
Bioethanol is produced by fermenting plant-based materials such as sugarcane, maize, or agricultural waste. It is considered a cleaner and safer energy source that can reduce indoor air pollution and environmental degradation.
The company sold bioethanol stoves at about Rwf22,000, while the fuel cost Rwf850 per litre, positioning it as one of the emerging alternatives to conventional cooking fuels.
Customers left with unused balances
However, the sudden suspension has left customers unable to access fuel, with some saying they still have unused balances on their accounts.
Angelique Murekatete, a resident of Nyamirambo Sector in the City of Kigali, said she used to refill fuel at retail outlets in areas such as Ku Ryanyuma and Cosmos.
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"I bought the stove and the initial fuel at Rwf26,000. After that, we paid using codes and collected the fuel from retail agents,” she said.
"The activities stopped when I had already paid Rwf4,200 to collect more fuel. Two months have passed and I cannot find the fuel anywhere. Some customers had paid more than Rwf10,000.”
Murekatete said she chose the bioethanol stove because it was affordable and easy to use.
"The problems started earlier when customers experienced delays in receiving the stoves they had ordered. Agents keep telling us to wait because they are also in a difficult position,” she said.
Retail agents also affected
Retail agents who distributed the fuel say they have also received little information from the company.
Louise Ntihanabayo, who operates a KOKO fuel distribution point at Gisozi Business Centre in Kigali, said she was only informed that operations had been postponed.
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"I received a message saying activities had been paused, but I have not been told when they might resume,” she said.
"We are also waiting because KOKO has stopped supplying fuel to us.”
Caritas Mukamahoro, one of the company’s early customers, said most shops that previously sold bioethanol fuel are now closed.
"When we ask, agents say they will inform us when activities resume. Even the phone number the company shared does not respond,” she said.
"Each customer had a subscription account, and some of us still have money on those accounts. The service stopped when I still had a balance of more than Rwf1,000.”
She added that some users are considering selling their bioethanol stoves to electronic waste handlers.
Awaiting official response
When contacted, Doreen Rwigamba, Strategy and Investment Manager at KOKO Networks, said the company’s Managing Director was better placed to comment.
Darlington Toni Kabatende, Managing Director at KOKO Networks, had not responded to The New Times by the time of publication.
In March 2022, the Government of Rwanda signed a $25 million agreement with KOKO Networks to develop a nationwide bioethanol cooking fuel network aimed at replacing charcoal and firewood.
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The company had planned to reach one million households within five years and explore local bioethanol production once it reached at least 250,000 customers.
However, Rwanda Energy Group (REG) previously clarified that it does not have a memorandum of understanding with Energy Development Corporation Limited (EDCL) regarding the company’s operations.
The Rwanda Development Board (RDB), which had signed an agreement with the company for the pilot project, had not yet commented on the suspension.