Circle Gas loss widens to $39m, seeks $28m amid Kenya carbon credit delay

Circle Gas, the UK parent of Kenya's M-Gas LPG supplier, reported $67 million in contracted carbon credits awaiting delivery and $57 million in cash prepayments for 2025, yet posted a $39.3 million loss, held just $1.1 million in cash and carries net liabilities of $156.7 million. The company says it needs about $28 million in new financing to fund its 2026 growth plans. Its financial strain highlights the risk for clean-cooking businesses that rely on carbon-credit revenue when government authorisation to sell those credits internationally is pending or denied. M-Gas said its clean-cooking project received a Letter of Approval in January 2026, but Circle Gas's accounts show it is still seeking a Letter of Authorisation, leaving the value of some contracted credits uncertain. The collapse of fellow Kenyan firm Koko Networks—which entered administration after the government declined to authorise its carbon-credit sales—shows how missing approval can wipe out expected revenue and leave large debts. For Nigeria, where LPG adoption and clean-cooking initiatives are expanding, the episode underscores that carbon-credit financing can boost growth only if clear, timely government approvals are in place; policy delays can turn promised assets into liabilities. Will Nigerian clean-cooking ventures factor carbon-credit pipelines into their funding models, or push for stronger regulatory frameworks to secure those future revenues first?

SOURCE: https://techcabal.com/2026/10/13/circle-gas-carbon-revenue-kenya/