KOKO Networks’ collapse hits UK parent with KSh6.4B loss

29 March 2026

On Techpoint Digest, we discuss KOKO Networks' collapse, when power bills eat into your profits, and Starlink's regulatory wall in Namibia.

KOKO Networks’ collapse hits UK parent with KSh6.4B loss

Dobar den,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

KOKO Networks’ collapse wipes out KSh6.4B

When power bills eat your profit

Starlink hits regulatory wall in Namibia

KOKO Networks’ collapse wipes out KSh6.4B

Koko Networks

It’s not every day a company serving over a million households just collapses overnight, but that’s exactly what happened with KOKO Networks. Once seen as a poster child for Africa’s clean energy future, the company’s sudden shutdown is now sending shockwaves far beyond Kenya.

Here’s the news: KOKO Networks’ collapse has dealt a £36.85 million (about KSh6.4 billion) hit to its UK parent company, which is now also shutting down. The parent firm has already written off more than £35 million in loans after concluding the Kenyan business, its core operation, would not recover.

What this means is bigger than one startup failing. KOKO’s entire model depended on selling carbon credits, essentially getting paid for reducing emissions by replacing charcoal with cleaner bioethanol. But when the Kenyan government refused to approve those credits, the whole system fell apart. Without that revenue, the business couldn’t sustain itself.

Why this matters is the human and economic impact. KOKO had reached over 1.3 million households and provided a cheaper, cleaner alternative to charcoal. Its shutdown not only led to hundreds of job losses but also left many low-income families scrambling for cooking fuel again. It also raises serious questions about how Africa funds climate solutions, especially when they rely heavily on global carbon markets.

PayU Kenya shuts down after CBK revokes licence

How we got here is a mix of ambition and regulatory friction. KOKO raised hundreds of millions of dollars and established a vast distribution network, placing a significant bet on carbon finance. But delays and refusals around government approvals, especially the all-important “letter of authorisation,” stalled its ability to ...