Business · Companies · 7 hrs ago
Circle Gas faces uncertainty over Kenyan carbon-credit authorisation
Circle Gas, the UK parent of Kenya’s M-Gas, is awaiting final authorisation for carbon-credit transfers.
M-Gas supplies liquefied petroleum gas in small amounts, using smart meters so households can pay as they cook.
Revenue from carbon credits helps support this clean-cooking business model.
Circle Gas reported $67 million in contracted credits awaiting delivery at the end of 2025 and $57 million in cash prepayments from buyers.
Project approval does not guarantee government authorisation to transfer credits internationally.
Another Kenyan clean-cooking company, Koko Networks, entered administration after the government declined to authorise the carbon-credit sales on which its business depended.
Circle Gas lost $39.3 million in 2025, had $1.1 million in cash at year-end and reported net liabilities of $156.7 million.
It needs about $28 million in new funding for its 2026 growth plans, and says investment may be limited if the funding is not secured.
Circle Gas reported $67 million in contracted carbon credits awaiting delivery and $57 million in prepayments in 2025.
The UK company is the parent of M-Gas, a Kenyan pay-as-you-cook liquefied petroleum gas supplier.
M-Gas has received project approval, but it is unclear whether it has the separate government authorisation needed to transfer credits internationally.
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.
The company says it needs about $28 million in new funding for its 2026 growth plans.
- Who
- Circle Gas, the UK parent of Kenyan clean-cooking supplier M-Gas.
- What
- The company faces uncertainty over government authorisation for carbon credits, amid financial losses and a need for new funding.
- When
- The financial figures are for 2025; M-Gas announced project approval in January 2026.
- Where
- Kenya.
- Why
- Authorisation is required to transfer specified emissions reductions internationally, and carbon-credit revenue is important to the clean-cooking business model.
This story does not have two clearly opposing sides.
Circle Gas reported $67 million in contracted carbon credits awaiting delivery, $57 million in prepayments, $1.1 million in cash and net liabilities of $156.7 million.
M-Gas announced that its clean-cooking carbon project had received a Letter of Approval.
Circle Gas filed accounts that described a Letter of Acceptance and an application for a Letter of Authorisation.
- Contracted credits awaiting delivery
- $67 million
- Cash prepayments against carbon-credit contracts
- $57 million
- 2025 revenue
- $40.8 million, up from $36.1 million
- 2025 loss after tax
- $39.3 million
- Cash at 2025 year-end
- $1.1 million
- Funding sought for 2026 growth plans
- About $28 million
What people are saying
At the date of approval of these financial statements, the additional third-party funding of approximately US$28.0m necessary to finance continued growth funding for the base case in 2026 is yet to be fully secured, and there is no certainty that funding will be available to the Group (Circle Gas)
Sources
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