Kenya’s clean-energy sector has been dealt a major blow after Koko Networks, the high-profile bioethanol startup, collapsed into administration following a failed bid to safe authorities approval for carbon credit score gross sales.
On 1 February, administrators of Koko Networks Restricted and Koko Networks appointed Muniu Thoithi and George Weru of PricewaterhouseCoopers (PwC) as joint directors, studies state.
This transfer, made below the Insolvency Act 2015, follows a weekend of “disaster conferences” on the agency’s headquarters after a significant lifeline from the Ministry of Surroundings was abruptly severed.
The $300M Collapse
The insolvency proceedings place a enterprise that served upwards of 1.3 million low-income households and managed $300 million (£238m) in infrastructure funding below the management of auditors.
Consequently, the fallout has been speedy; greater than 700 workers have been laid off on 31 January, only a day earlier than the directors formally took cost.
PwC has confirmed it now holds “management and administration of the property and affairs” of the businesses. Their major goal, in line with a proper discover, is to discover methods of rescuing the enterprise as a “going concern” or, failing that, reaching a greater consequence for collectors than a normal liquidation.
The sudden decline of Koko seems to be rooted in a regulatory impasse as reported. For practically two years, administration had been negotiating for a Letter of Authorisation (LOA) from the Kenyan authorities, which might have permitted the sale of carbon credit on the worldwide market.
Whereas insiders say negotiations have been “going effectively” as not too long ago as 2025, optimism evaporated final Wednesday when a senior Ministry of Surroundings official reportedly “trashed” the progress made.
This rejection proved deadly, as Koko’s carbon-finance backers had tied their funding, totalling over $300 million in fairness and debt to the receipt of that particular doc.
With out these revenues, the corporate might not subsidise its gasoline to the value of KES 30 ($0.23) promised to its clients.
The studies additional said that regardless of its fast growth throughout Kenya and Rwanda, Koko had been scuffling with logistical and monetary headwinds since early 2024.
For example, in April 2024, the Power and Petroleum Regulatory Authority (EPRA) suspended bioethanol imports, forcing the agency to purchase dearer native provide.
Along with that, the native pivot destabilised gasoline logistics and depleted funds initially earmarked for its Rwanda operations.
Additionally, by late 2025, most of the 3,000 automated gasoline outlets throughout the community have been tormented by shortages.
The corporate’s mannequin relied on promoting two-burner good stoves at a closely subsidised KES 1,950 ($16), a value far under manufacturing prices, offset totally by anticipated carbon earnings.
The collapse comes regardless of backing from heavyweight traders, together with Microsoft’s Local weather Innovation Fund and a $179.6 million assure from the World Financial institution’s Multilateral Funding Assure Company (MIGA).
PwC is anticipated to speak how wage arrears and redundancy obligations will likely be dealt with within the coming days. Within the meantime, anybody with a declare towards the corporate has been given 14 days to submit their particulars to the directors to be included within the collectors’ roll.
