Kenya-based clean energy startup Koko Networks has filed for administration, marking a major setback for one of Africa’s most high-profile climate and energy ventures. The move places the company under the control of court-appointed administrators as it attempts to restructure its finances and determine whether the business can continue operating as a going concern.
Founded in 2011, Koko Networks set out to transform urban cooking in Africa by replacing charcoal and kerosene with cleaner ethanol fuel. Its model relied on a network of smart fuel dispensers installed in neighbourhood kiosks, allowing households to purchase small, affordable quantities of fuel using mobile money. Over the years, the company expanded rapidly across Nairobi and later into Rwanda, positioning itself as a scalable solution to both household energy access and climate change.
Koko attracted significant global backing, raising more than $90 million from investors including Equinor, Shell Ventures, and the International Finance Corporation (IFC). The startup also benefited from carbon credit revenues, which were expected to subsidise fuel costs for low-income households and underpin its long-term sustainability.
However, despite its ambitious vision and strong funding, Koko struggled with mounting operational costs and challenging unit economics. The capital-intensive nature of deploying and maintaining fuel infrastructure, coupled with volatile ethanol prices and foreign exchange pressures, reportedly strained the company’s cash flow. Sources familiar with the matter say delays and uncertainty around carbon credit income further weakened its financial position.
By filing for administration, Koko is seeking protection from creditors while administrators assess options that may include restructuring, asset sales, new investment, or a potential wind-down of operations. The company has not publicly detailed how the process will affect employees, kiosk partners, or customers, though administrators are expected to prioritise continuity of essential services where possible.
Koko’s situation highlights the broader difficulties facing climate and energy startups operating in emerging markets. While demand for clean cooking solutions remains high and policy support is growing, building commercially viable models that serve low-income consumers at scale remains complex and risky.
For Kenya’s startup ecosystem, the development is a sobering reminder that even well-funded, mission-driven companies are not immune to market realities. As investors and policymakers reflect on Koko’s challenges, the case is likely to influence how future clean energy ventures are financed, structured, and supported across Africa.
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