Kenya's homegrown automaker, Mobius Motors, has announced it is closing its doors, signaling the end of a bold venture that aimed to revolutionize the country's automotive industry. The company, known for its rugged and affordable SUVs, is set to enter liquidation following a decision by its stakeholders.
Mobius Motors' Director, Nicolas Guibert, issued a formal notice on Monday, declaring a creditors' voluntary insolvency. The decision was made during a crucial stakeholder meeting held earlier that day. “At a meeting of the shareholders held on August 5, 2024, it was resolved to place the company under liquidation as per Section 393(1) (b) of the Insolvency Act and to appoint KVSK Sastry as the liquidator to wind up the company,” the notice stated.
Insolvency is a dire situation for any business, signifying that the company is unable to meet its financial obligations. Liquidation, in this context, involves ending the company’s operations and distributing its remaining assets to creditors and shareholders. Guibert confirmed that KVSK Sastry will oversee the liquidation process, ensuring that all claims are addressed appropriately.
As part of the liquidation process, a list of creditors and proxy forms will be made available for inspection on Friday, August 9, at Mobius’s headquarters in Nairobi’s Sameer Business Park.
Mobius Motors, founded by British entrepreneur Joel Jackson, made waves when it unveiled its first model, the Mobius I, in 2014. The compact SUV was designed to be tough and affordable, targeting Kenya’s rough roads. However, its stripped-down appearance and a price tag of Ksh.1.3 million elicited mixed reactions from the public. Despite this, the company pushed forward, releasing more refined models, the Mobius II and Mobius III, priced at Ksh.1.5 million and Ksh.3.9 million, respectively, by 2022.
Kenya’s automotive market, however, remains heavily skewed towards used imports, particularly from Japan, posing a significant challenge for local manufacturers like Mobius Motors. Despite the government’s efforts to encourage local vehicle assembly and attract global brands like Volkswagen, the sale of new vehicles in Kenya dropped by 15% last year, reflecting the tough market conditions.
With Mobius Motors now winding down, it marks the end of an ambitious chapter in Kenya’s automotive history. The company’s journey, while challenging, highlighted both the potential and the hurdles of manufacturing locally in a market dominated by imports.
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