Photo Credit:Reuters
Mobius Motors, the trailblazing Kenyan automaker known for its rugged, affordable SUVs designed for Africa’s challenging roads, has announced it will cease operations due to insurmountable financial difficulties. This marks the end of a 13-year journey for the company that aimed to revolutionize the African automotive market.
Founded in 2011 by British entrepreneur Joel Jackson, Mobius Motors set out to build robust vehicles suitable for the continent’s rough terrains. The company’s flagship model, Mobius II, launched in 2015, was priced at Ksh.1.3 million (approximately $10,000), positioning itself as a cost-effective alternative to second-hand imports dominating the market .
Despite securing substantial investments totaling $56 million from notable backers like Playfair Capital and the U.S. Development finance Corporation, Mobius faced persistent financial strains. Tax disputes with the Kenya Revenue Authority (KRA) and stiff competition from
cheaper imported vehicles exacerbated its struggles. The company was hit with a tax claim of Ksh.85.74 million in 2018, further destabilizing its
financial footing .
The challenges didn’t stop there. Mobius’ business model, which relied on pre-orders with refundable deposits, failed to gain the expected traction. The company’s subsequent models, Mobius II and Mobius III, despite updates and added features, could not compete with the influx of second-hand imports from Asia and Europe.
In an official statement, Mobius director Nicolas Guibert confirmed the decision to liquidate the company, citing the inability to sustain operations amid mounting debts and financial liabilities. As of August 2020, Mobius had accumulated a debt of Ksh.649.2 million and a shareholder deficit of Ksh.389.1 million.
The closure of Mobius Motors is a significant setback for Kenya’s automotive industry, which has seen efforts from both local and international players to establish a foothold in the market. The Kenyan government has been actively promoting local vehicle assembly, but the
dominance of second-hand imports and economic challenges have made it a tough landscape for new entrants.
As Mobius winds down, the availability of spare parts and after-sales support for existing vehicles remains uncertain, posing challenges for current owners. The industry now looks to other potential local manufacturers and the growing e-mobility sector to fill the void left by Mobius.
With creditors set to meet on August 15 to vote on the voluntary liquidation, the full impact of Mobius’ shutdown on the local economy and automotive sector will soon become clearer. For now, Kenya’s dream of a home-grown automaker producing affordable, rugged vehicles for its roads has been put on hold.