Kenyan Auto Assembly Firm Mobius Motors Announces its shutting down

The director of Mobius Motors, Nicolas Guibert, announced on Monday that the company is shutting down and going into liquidation.

Liquidation happens when a company cannot pay its debts and must close down. It involves ending the business and distributing its assets to those owed money.

The company uses its remaining assets to pay creditors and shareholders based on the priority of their claims.

In the notice issued on Monday, Guibert explained that he made the decision to close Mobius Motors after a stakeholder meeting earlier that day.

This news not only impacts the company’s stakeholders but also affects Kenya as a whole, as Mobius Motors symbolized a significant Kenyan aspiration.

The Mobius Vision: Affordable SUVs Designed for Kenyan Roads

British entrepreneur Joel Jackson founded the Mobius with the goal of creating locally-made SUVs designed for Kenya’s terrain and selling them at prices similar to those of imported vehicles, which dominate Kenyan roads.

Founded in 2013, the Nairobi-based company introduced its first vehicle, the Mobius I, in the following year. Despite its Ksh.1.3 million price tag, the car received mixed reviews due to its minimalistic design.

The automaker later introduced the Mobius II and Mobius III models as upgrades to the flagship car. Meanwhile, the company priced these enhanced yet rugged SUVs at Ksh.1.5 million and Ksh. 3.9 million, respectively, as of 2022.

By July 2023, Mobius Motors reported that it had evolved from initially importing car parts for assembly to designing and manufacturing complete units directly in Nairobi.

At that time, Nicolas mentioned that they had sold over 80 Mobius III units and aimed to reach 200 units annually in Kenya alone. However, he highlighted the challenges of vehicle manufacturing in Kenya, particularly within the supply chain, citing a lack of suppliers.

Encouraging Local Manufacturing

The Mobius director called on the government to provide incentives for local vehicle manufacturing to encourage further investment in the industry.

To many Kenyans, Mobius was what an attempt at a ‘Made in Kenya’ car looked like and, even more, what the dream could become if fostered.

Currently, Guibert has announced that KVSK Sastry will manage the liquidation process for Mobius. A list of creditors and proxy forms will be made available for inspection on Friday, August 9, at the company’s head office located at Sameer Business Park in Nairobi.

With Mobius’s closure, we will see if another carmaker or players in the e-mobility sector, who have been entering Kenya’s public transport market, will take on the ‘Kenyan Mercedes’ dream.