{
  "id": 12151775,
  "title": "Koko’s carbon credits find no buyer as creditors fund UK wind-down",
  "url": "https://urgent.news/2026/10/05/kokos-carbon-credits-find-no-buyer-as-creditors-fund-uk-wind-down",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-05T12:41:31.000Z",
  "source": {
    "name": "TechCabal",
    "slug": "techcabal",
    "url": "https://techcabal.com/2026/10/05/koko-carbon-credits-find-no-buyer/"
  },
  "original_language": "en",
  "account": "Koko Networks (UK) Limited, a British subsidiary of the insolvent Kenyan clean-cooking company Koko Networks, has been unable to sell its carbon credits at a reasonable price, leaving creditors with minimal expectations of recovery as the company undergoes liquidation. The difficulty originated in Kenya when Koko Networks Limited, the company providing subsidised cooking fuel to over a million households, laid off over 700 employees in January and entered administration on February 1. The Kenyan government refused to issue the Letter of Authorisation required for selling carbon credits in international compliance markets, eliminating a key source of income that had helped keep fuel prices affordable. The carbon credits constitute the UK arm's primary asset, as Koko Networks (UK) Limited sold them and secured the group's debts. Without a sale, FirstRand Bank, owed $60 million, and other unsecured creditors, totaling about £126 million ($167 million), are expecting to receive no payment. The administration proceedings are anticipated to cost around £880,000 ($1.16 million), excluding administrators' fees. PwC, appointed as administrator of Koko Networks (UK) Limited on February 19, reported in a progress update dated September 17 that they do not foresee the bank receiving full repayment from the company's assets. Initially, PwC attempted to market Koko’s assets, including its technology, manufacturing operations, and fuel distribution platform, in deals exceeding $15 million. Talks were held with three potential buyers and five brokers before appointing a broker to market the carbon credits. Offers have emerged, but the administrators assert they \"do not perceive these offers to generate a meaningful return to the estate.\" PwC will continue to market the credits. Creditors are financing the closure as little cash is coming in. Koko UK received approximately $659,000 during the period from administrators of the Kenyan business, which comes from certain creditors under a broader group arrangement. The funding carries interest and is treated as an administration expense, making it a repayment obligation ahead of unsecured creditors. The administrators project costs of around £880,000 ($1.19 million) before their own fees. Lawyers, primarily DLA Piper UK, are the largest expense, guided by the law firm serving the case. Creditors will also need to approve about £181,000 ($245,000) in unpaid costs from prior to the appointment, primarily PwC's time. The company has not yet determined its remuneration. Against this bill, there is little to recover, as the company holds less than £280,000 ($379,000) in cash. Koko's largest receivable, a debt of about £1.1 million ($1.49 million) from Koko Rwanda, the group's Rwandan business, is not anticipated to be repaid due to the insolvency of that company. The largest creditor is FirstRand Bank, through its Rand Merchant Bank division, the investment banking arm of the South African lender. The bank's collateral does not include the company's main assets, so administrators do not expect it to recover anything. Other unsecured creditors, including HMRC, are also expected to receive nothing. The administrators are exploring potential legal claims with their counterparts in Kenya and the group's Mauritius entity and are seeking financing to pursue them. The report does not specify who the claims would target. It cautions that if pursued, \"significant costs will arise\" in addition to the current estimates.",
  "summary": "The carbon credits are the UK arm’s main asset, as Koko Networks (UK) Limited sold them and guaranteed group debts.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}