KOKO Networks’ UK carbon arm hit $50.5 million revenue, then fell apart over a Kenyan permit

KOKO Networks’ United Kingdom carbon trading arm collapsed weeks after reporting a surge in revenue, as a regulatory setback in Kenya cut off access to a higher-value carbon market central to its business.

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 from £1.8 million ($2.3 million) a year earlier. The company still recorded a £14.0 million ($17.8 million) loss and accumulated deficits of £104.6 million ($132.8 million), with liabilities exceeding assets.

The filings offer a snapshot of a fast-growing carbon credit business that relied on regulatory approvals in Kenya to remain viable.

KOKO Networks (UK) Ltd, which trades carbon credits linked to clean cooking projects run by its parent group, entered administration on February 19 after an associated Kenyan entity failed to secure a permit required to access compliance carbon markets. That entity entered administration on 1 February 2026.

Compliance markets offer higher prices than voluntary markets, making them critical to the company’s path to profitability.

“As a result of this development, the Directors have determined that the company is no longer able to identify a viable pathway to achieving revenues and profitability,” the filing stated.

By the time the 2024 financial statements for KOKO Networks (UK) Ltd were approved on  February 5, 2026, the company had ceased trading and prepared its accounts on a break-up basis, reflecting expected asset recoveries and shutdown costs.

Even before the regulatory setback, the business was under pressure as it relied on £28.6 million ($36.3 million) in related-party borrowings in 2024, while operating cash flow remained negative.

The company sourced all its carbon credits from a single related-party supplier in Kenya, concentrating both supply and regulatory risk. When that link failed, there was no alternative route to market.