The lights have gone out for Koko Networks. In a stunning collapse of one of Kenya’s most celebrated clean-energy startups, the company has entered administration, leaving 700 employees jobless and 1.3 million households in limbo. PwC has now seized the wheel of a ship that hit the iceberg of regulatory deadlock.

PricewaterhouseCoopers (PwC) administrators Muniu Thoithi and George Weru officially took charge on February 1, 2026, tasked with the grim reality of salvaging value from the wreckage. The insolvency of Koko Networks is not just a business failure; it is a significant blow to Kenya's green energy ambitions and a tragedy for the hundreds of staff who were summarily laid off.

The Carbon Credit Death Blow

The trigger for this catastrophe was pulled in the corridors of power. Koko’s business model relied heavily on subsidizing bio-ethanol fuel for low-income earners using revenue from selling carbon credits globally. However, the government's refusal to sign the crucial Letter of Authorization (LOA) for these credits choked the company's lifeline.

Without the LOA, Koko could not monetize its carbon offsets, making its subsidized pricing model instantly unsustainable. "We were facing bankruptcy because selling carbon credits is key to our business model," a board member revealed. The standoff suggests a "senior official" may have frustrated the process, raising questions about sabotage.

• The Human Cost: On January 31, over 700 employees were told not to report to work. There are no clear answers on when, or if, they will receive their terminal dues.
• The Customer Crisis: 1.3 million Nairobi households rely on Koko Cookers. With the company in administration, the supply chain for their daily fuel is now in jeopardy, threatening a return to dirty kerosene and charcoal.

A Warning to Investors?

The collapse sends a chilling signal to the investor community in Nairobi. Koko had attracted over $300 million in investment, betting on a supportive regulatory environment. That bet has failed spectacularly.

As PwC begins the forensic dismantling of the firm, the focus shifts to the government's role. Was this bureaucratic incompetence, or was a thriving company sacrificed at the altar of political interests? For the 700 jobless Kenyans and the millions of users wondering if their cookers will work next week, the answer is overdue.