Koko Networks, a leading clean-cooking and bioethanol company, has announced its exit from the Kenyan market, giving creditors a 14-day deadline to submit claims. The shutdown stems from financial difficulties linked to a dispute over carbon credit approvals. Joint administrators were appointed under the Insolvency Act to oversee the company's assets and operations.
Koko Networks has faced months of financial strain due to a dispute over carbon credit approvals, which were central to its business model. The company specialized in clean cooking technology, supplying bioethanol fuel and smart cookstoves to help households shift from charcoal and kerosene. By cutting the use of polluting fuels, it generated carbon credits intended for sale on international markets to generate revenue and keep cooking fuel affordable for low-income households.
Reports indicate that the government declined to issue a required letter of authorisation for the international sale of these carbon credits, severing a key revenue stream. Without access to carbon finance, Koko Networks, which operates primarily in African and Asian countries, stated it could no longer sustain operations, leading to a halt in activities and workers being sent home.
A gazette notice dated February 20, 2026, confirmed the appointment of joint administrators named on February 1, 2026, under the Insolvency Act. "By virtue of the administration, the powers of the directors of the company in terms of dealing or transacting with the Company’s assets have ceased, unless with the express permission of the administrators," the notice stated. "Anyone who may have any claim against the company is required to send full particulars of those claims to the undersigned within 14 days from the date of this publication," it added.
The administrators will evaluate whether the company can be revived, sold, or wound up, a decision that will shape the outcomes for creditors, employees, and customers. The closure raises new concerns about the stability of Kenya's economy amid public outcry over the rising cost of living.
