/Graveyard/KOKO Networks

KOKO Networks logo

KOKO Networks

Smart commerce platform

🇰🇪 KenyaEnergy & UtilitiesShut down

Epitaph

“Here lies KOKO Networks. It built smart bioethanol stations to make clean cooking affordable across Kenya. The stoves had fuel, but the carbon-credit engine lost government authorisation. Seven hundred jobs later, the network went offline.”

Overview

Born
2013 (Year)
Died
January 2026 (Month)
Lifespan
13 years
Fate
Shut down
Headquarters
🇰🇪 Kenya
Category
Energy & Utilities
Stage at death
Growth stage
Primary cause
Regulation
Contributing causes
Business model or unit economics, Funding or runway, External shock

Death certificate

Death certificate for KOKO Networks

Timeline

  1. 2013Founding

    KOKO Networks founded in Kenya to build a clean-cooking bioethanol distribution network

  2. April 2024Import suspension

    Kenya's energy regulator suspended bio-ethanol imports, disrupting operations

  3. 2025Guarantee secured

    KOKO secured a $179.64 million World Bank/MIGA guarantee to support expansion

  4. 29 January 2026LOA rejected

    A senior Kenyan ministry official rejected KOKO's letter of authorisation to sell carbon credits abroad

  5. 31 January 2026Mass layoffs

    KOKO laid off its entire 700-person workforce and ceased operations

  6. 1 February 2026Administration

    PwC-appointed administrators took control of KOKO's assets and affairs

  7. July 2026Asset sale

    Administrators began seeking buyers for the collapsed clean-cooking business.

Autopsy report

Why did KOKO Networks shut down?

KOKO Networks, a Kenyan clean-cooking and biofuel startup, laid off its entire 700-person workforce and ceased operations on January 30-31, 2026, after the Kenyan government rejected a letter of authorisation needed to sell carbon credits abroad, cutting off the revenue that subsidized its bioethanol and stoves. The company entered administration under PwC-appointed administrators on February 1, 2026, and by mid-2026 was being liquidated with its assets put up for sale. [graveyard-sheet-seed]

What KOKO Networks attempted

KOKO Networks built a network of automated bioethanol dispensing machines placed inside retail shops across Nairobi and other urban areas, selling subsidized clean cooking fuel and stoves to low-income households as an alternative to charcoal and kerosene, funded partly by international carbon credit sales.

What worked

The company scaled to over 3,000 automated fuel dispensers and roughly 1.5 million dependent households, and raised more than $300 million in equity, debt and guarantees (including a $179.6 million World Bank/MIGA guarantee) from investors such as Verod-Kepple, Mirova, Rand Merchant Bank and Microsoft's Climate Innovation Fund.

Early warning signs

Kenya's energy regulator suspended bio-ethanol imports in April 2024, forcing operational shifts, and customers faced recurring fuel shortages through late 2024 and 2025 while the company awaited government approval of its carbon credit authorisation.

What happened

After prolonged negotiations, a senior Kenyan ministry official rejected KOKO's letter of authorisation for carbon credit sales on January 29, 2026, eliminating the revenue that subsidized its below-market fuel and stove pricing. Management told all 700 staff not to report to work on January 31, 2026, and PwC-appointed administrators took control of the company on February 1, 2026; by mid-2026 administrators were seeking buyers for the collapsed business.

Lessons for future builders

  • A subsidy-dependent network needs regulatory and revenue redundancy. Do not let one government authorization or carbon-credit channel become the switch for the entire operation.

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