PwC Initiates Sale of Koko Networks Assets Amid Clean Energy Restructuring

The formal commencement of the sale process for Koko Networks by PwC Kenya marks a sobering milestone for one of Africa’s most ambitious climate-tech ventures. Once hailed as a potential unicorn, Koko Networks successfully scaled a bio-ethanol cooking fuel solution to over 1.1 million Kenyan households, effectively challenging the dominance of charcoal and kerosene in dense urban markets. However, the transition from rapid, venture-backed expansion to financial insolvency has forced a restructuring that now sees its extensive physical and digital infrastructure on the auction block. This development is not merely a corporate liquidation but a stress test for the entire clean-cooking investment thesis in the Global South.

PwC, acting as the court-appointed administrator, is seeking expressions of interest for the business either as a going concern or through the sale of specific asset blocks. The primary value proposition for potential acquirers is a sophisticated last-mile distribution network that includes more than 2,000 'Koko Point' smart fuel dispensers located in neighborhood kiosks. This network is supported by a robust cloud-based platform that manages fuel logistics, customer payments via mobile money, and carbon credit tracking in real-time. For a strategic buyer, particularly an established energy major or a logistics giant, the acquisition offers an immediate, dominant foothold in the East African household energy market, bypassing years of regulatory hurdles and infrastructure deployment.

“

The formal commencement of the sale process for Koko Networks by PwC Kenya marks a sobering milestone for one of Africa’s most ambitious climate-tech ventures.

The downfall of Koko Networks highlights the inherent risks in the 'carbon-subsidized' business model that has become prevalent in the climate-tech space. Koko’s strategy relied on selling bio-ethanol at prices competitive with charcoal, with the operational shortfall intended to be covered by the monetization of carbon credits generated by its users. While this model allowed for rapid customer acquisition, it left the company highly vulnerable to the volatility of global carbon market prices and the high overhead of maintaining a physical hardware network. As venture capital funding for African startups tightened significantly throughout 2024 and 2025—a period often described as the 'funding winter'—Koko found itself unable to bridge the gap between its high burn rate and a sustainable path to profitability without continuous equity injections.

Industry analysts are closely watching the profile of potential bidders to gauge the future direction of the sector. Traditional oil and gas companies like TotalEnergies or Vivo Energy, which operates Shell-branded stations across Africa, are logical candidates. These entities face increasing pressure to diversify their portfolios into renewable energy and could leverage Koko's existing retail footprint to cross-sell other sustainable products. Alternatively, private equity firms specializing in infrastructure or impact investing may see value in the company’s proprietary technology and massive customer database. The sale is not merely a transfer of hardware; it is the transfer of a digital ecosystem that holds deep data insights into the spending habits of over a million low-to-middle-income consumers.

The outcome of this sale will have significant implications for the clean cooking sector globally. If a buyer can successfully integrate Koko’s assets and stabilize the supply chain, it will prove that the infrastructure for clean energy transition in emerging markets is viable, even if the original venture-backed vehicle was not. However, a fragmented sale of assets would be a major setback for Kenya’s environmental goals, potentially forcing over a million families back to traditional, polluting fuels like charcoal, which would increase indoor air pollution and accelerate deforestation. For now, the market remains in a state of cautious observation as PwC evaluates the bids that will determine whether Koko's model can survive under new ownership.