In a move that has sent shockwaves through Kenya’s burgeoning automotive industry, Mobius Motors, the innovative local car manufacturer, has announced the closure of its operations. Founded in 2011 by British entrepreneur Joel Jackson, Mobius Motors aimed to revolutionize transportation in Africa by producing affordable, rugged vehicles tailored to the continent’s challenging terrains.
The closure, attributed to a combination of economic pressures, supply chain disruptions, and regulatory hurdles, raises critical questions about the future of local manufacturing in Kenya.
“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, announced in a notice.”
After the stock owners’ decision, Guibert said that the firm will engage with its creditors to consider the insolvency. “List of names of the Creditors and Proxy forms will be made available, free of charge, for inspection on 9-Aug-2024 at the Company’s offices at Mobius Motors office, Block C3, Sameer Business Park, Mombasa Road, Nairobi.”
Mobius Motors, which raised $56 million over five funding rounds, focused on producing affordable SUVs for small and medium-sized enterprises (SMEs) in sectors like infrastructure, agribusiness, and supplies, particularly those operating in remote areas requiring durable vehicles.
Founded by British entrepreneur Joel Jackson and supported by UK-based venture capital firm Playfair Capital, Mobius launched its first stripped-down SUV model in 2014, claiming it was specifically designed for African roads. This initial model, comprising 50 units, cost $10,000 (KES1.3 million), which was below the market prices of standard SUVs in Kenya at the time.
The company released subsequent models, Mobius II in 2018 and Mobius III in 2021, but soon faced financial troubles as it struggled to compete in a market flooded with second-hand imports from thIt’s heartbreaking,” said Jane Njoroge, a former engineer at Mobius Motors. “We believed in the mission and put our hearts into building something unique for Kenya. Now, we’re left without jobs and uncertain futures.”
The closure of Mobius Motors sends a worrying signal to other local manufacturers and potential investors. It is also a significant blow to the company’s employees such as engineers, technicians, and assembly line staff.
The closure of Mobius Motors is a stark reminder of the challenges facing local manufacturing in Kenya. However, it also highlights the potential for growth and innovation. By learning from these challenges and fostering a supportive environment, Kenya can still achieve its vision of becoming a hub for automotive manufacturing in Africa. The legacy of Mobius Motors—its vision, innovation, and resilience—will continue to inspire future endeavors in the industry.