Mobius Motors, the once-celebrated Kenyan automotive startup, has announced its closure after a 13-year journey marked by ambitious goals, innovative designs, and substantial challenges. The company, which sought to revolutionize Africa’s automotive industry by producing robust, affordable vehicles tailored to the continent’s unique needs, has succumbed to insurmountable financial and operational hurdles.
The Kenya-based automaker backed by Playfair Capital has been struggling to settle suppliers and pay salaries as debts from its operations rise. The firm said in a Tuesday morning notice that shareholders resolved in a meeting held on August 5 to liquidate the company.
“At a meeting of the Shareholders held on 5-Aug-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,” said Nicolas Guibert, a director at Mobius, in a notice.
Founded in 2010 by British entrepreneur Joel Jackson, Mobius Motors aimed to fill a significant gap in the African market by providing vehicles that could withstand the rough terrains and poor road conditions prevalent across the continent. The vision was to create a durable, no-frills vehicle that would cater to small businesses, farmers, and transport operators in rural and urban areas alike.
Mobius Motors began its journey with considerable optimism and support. The company’s first model, the Mobius II, was introduced in 2014, designed specifically for African roads with a high ground clearance, reinforced suspension, and a simple, reliable engine. Priced at approximately $10,000, the vehicle was significantly cheaper than most competitors, making it accessible to a broader demographic.
The startup produced 50 units of its first model and subsequently launched the Mobius II in 2018 and Mobius III in 2021. However, these successors struggled to gain traction in the Kenyan car market, which is dominated by second-hand imports from the UK, Japan, and other Asian countries. Mobius Motors’ production model relied on pre-orders with a refundable deposit of $384 (KES 50,000), suggesting that demand for its vehicles may have been limited.
The company’s approach attracted notable investors, including Pan-African investment firm DOB Equity and the UK government’s CDC Group. Mobius Motors also received accolades and support from global platforms promoting innovation in emerging markets. The vision was clear: to democratize transport in Africa and empower local entrepreneurs and communities.
Mr. Guibert stated that the list of creditors and proxy forms will be available for inspection on Friday, August 9, at Mobius’s head office in Sameer Business Park, Nairobi. The company did not provide specific reasons for its voluntary liquidation. However, its departure follows a backdrop of debts and tax disputes with the Kenya Revenue Authority (KRA).
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