Mobius Motors, a vehicle manufacturer and assembler based in Kenya, is shutting down due to financial difficulties. The company could not pay its suppliers or employees, which led to the decision to close under Kenya’s Insolvency Act. After trying for a year to save the business, the company decided to go into voluntary liquidation.
The shutdown has sparked conversations about how government policies affect the mobility industry and Kenya’s economy. According to Kenya’s Insolvency Act of 2015, companies can close if the board decides through a special resolution that the company should liquidate voluntarily.
Mobius Motors, which raised $56 million from five funding rounds, produced affordable SUVs for small and medium-sized businesses in infrastructure, agriculture, and supply sectors, which often need durable vehicles that can handle rough terrains.
The company was founded by British entrepreneur Joel Jackson and introduced its first stripped-down SUV model in 2014, designed specifically for African roads. Mass production began after Mobius received support from Playfair Capital, a UK-based venture capital firm, and other financial backers.
The initial model had 50 units and was priced at $10,000 (KES1.3 million), which was lower than other standard SUVs in Kenya at the time. Mobius later released Mobius II in 2018 and Mobius III in 2021, but the company started to face financial problems because it could not compete with second-hand imports from the United Kingdom and several Asian countries.
“At a meeting of the shareholders held on 5 August 2024, it was resolved to place the company under liquidation as per Section 393(1) (b) of the Insolvency Act and appoint KVSK Sastry as the liquidator to wind up the company,” Nicolas Guibert, Mobius Director, said in a notice.
A creditors’ meeting is scheduled for August 15, 2024, at the Mobius Factory in Nairobi to confirm KVSK Sastry as the liquidator who will manage the winding-up process. A list of creditors’ names and proxy forms will be available for inspection on August 9, 2024, at the company’s office.
The closure of Mobius Motors highlights the challenges faced by local car manufacturers in competing with second-hand imports and the broader implications for local industries and economic policies in Kenya.
