KOKO Networks’ UK Carbon Arm Enters Administration

KOKO Networks’ UK-based carbon trading unit collapsed only weeks after reporting explosive revenue growth, underscoring how exposed the business was to regulatory decisions in Kenya.

Newly filed accounts for KOKO Networks (UK) Ltd, signed on February 5, 2026 and seen by TechCabal, show turnover jumped to £39.8 million ($50.5 million) in 2024, up from just £1.8 million ($2.3 million) the previous year more than a 20-fold increase.

But the topline surge did not translate into a sustainable business. The UK entity reported a £14.0 million ($17.8 million) loss for 2024 and carried accumulated deficits of £104.6 million ($132.8 million), with liabilities exceeding assets. Within weeks of approving its accounts, the company had ceased trading and entered administration.

KOKO Networks (UK) Ltd traded carbon credits linked to clean cooking projects run by its parent group in Kenya. According to the filings, the model depended heavily on access to compliance carbon markets, where credits typically fetch higher prices than in voluntary markets and were seen as central to the company’s route to profitability.

That strategy unravelled when an associated Kenyan entity failed to obtain a permit required to participate in those compliance markets. The Kenyan entity entered administration on February 1, 2026, cutting off the supply channel into the more lucrative market segment.

The UK company entered administration on February 19, 2026. In its filing, directors said that, following the Kenyan regulatory decision, they could no longer see “a viable pathway to achieving revenues and profitability.”

The accounts show how concentrated the business risk had become. KOKO Networks (UK) Ltd sourced all its carbon credits from a single related-party supplier in Kenya. That left both supply and regulatory exposure tied to one counterpart and one jurisdiction. When the Kenyan entity failed to secure the necessary permit, the UK arm had no alternative route to market.

By the time its 2024 financial statements were approved on February 5, 2026, KOKO Networks (UK) Ltd had already stopped trading. The accounts were prepared on a break-up basis, reflecting expected recoveries from remaining assets alongside shutdown and wind-down costs rather than ongoing operations.

The filings also show that, even before the regulatory setback in Kenya, the business was under financial strain. In 2024 the UK company depended on £28.6 million ($36.3 million) in related-party borrowings, while operating cash flow remained negative. With no diversified source of carbon credits and no independent access to markets, the unit’s fortunes were effectively tied to the regulatory status and performance of its Kenyan partner.

The result is a stark contrast in that a young carbon credit trading business able to post rapid revenue growth in 2024, yet still burdened with heavy losses, mounting deficits and a balance sheet where liabilities outweighed assets. Once its access to higher-value compliance markets in Kenya was blocked, the model quickly became unworkable.