NAIROBI, Kenya — The UK parent of KOKO Networks has entered administration, weeks after its Kenyan subsidiary collapsed, casting uncertainty over more than 1.5 million low-income households that relied on its subsidised clean cooking fuel.
According to filings, KOKO Networks (UK) Limited went into administration on February 19, 2026, following the earlier collapse of its Kenyan arm, which had already been placed under administration on February 1 under PricewaterhouseCoopers (PwC).
The collapse marks a dramatic downturn for a company once hailed as a pioneer in clean cooking solutions in Kenya since its launch in 2019.
At the heart of the crisis is a regulatory setback. Kenyan authorities declined to grant KOKO approval to sell carbon credits in higher-value compliance markets, where prices can reach up to Sh2,600 per credit, significantly higher than voluntary market rates.
Without access to these markets, the company’s business model—heavily reliant on carbon credit revenues—became unsustainable.
Despite strong revenue growth, financial pressures mounted. UK filings show turnover surged to Sh7 billion in 2024 from Sh313 million the previous year. However, the company still posted a Sh2.4 billion loss and accumulated deficits of Sh18 billion, with liabilities far exceeding assets.
The parent company also wrote off Sh6.15 billion in loans owed by its Kenyan subsidiary, alongside Sh230 million in intellectual property assets, underscoring the scale of financial distress.
The regulatory rejection came despite a June 2024 agreement linked to Paris Agreement frameworks, raising questions about policy consistency and investor certainty in Kenya’s emerging carbon markets.
Kenyan authorities reportedly cited concerns over the authenticity of the credits and transparency in KOKO’s operations in declining the permit.
The fallout has broader implications for Kenya’s clean energy sector and investment climate. KOKO had invested approximately Sh39 billion in the country, building a widely used clean fuel distribution network aimed at reducing reliance on charcoal and kerosene.
The company had also secured about Sh23 billion in political risk insurance from the Multilateral Investment Guarantee Agency (MIGA), a subsidiary of the World Bank, in what was described as the world’s first carbon-linked political risk cover.
Group accounts indicate revenues rose further to Sh7.8 billion in 2025, up from Sh6.7 billion in 2024.
The collapse leaves a significant gap in Kenya’s clean cooking ecosystem, with millions of households now facing uncertainty over access to affordable fuel alternatives.
