Kenya’s first vehicle maker Mobius Motors has announced its decision to close down citing financial constraints that will not allow the company to operate anymore.
It has been well known about the company’s monetary struggles as it has failed to settle suppliers and pay salaries, forcing debts to rise.
This was confirmed in a notice by the Mobius director, Nicolas Guibert stating, “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.”
Mobius Motors, founded in 2009, had enjoyed years of operation mostly enabled by investments as the company raised up to $56 million (about KES 7.3 billion).
Over the years, the company made a name for building price-friendly SUVs designed to withstand rough terrains. This was targeted at companies in infrastructure and supplies operating in remote areas.
Mobius Motors was backed by Playfair Capital, a UK-based VC. It also received funding from Chandaria Industries, a Kenyan-based manufacturer, DFC, a US government development corporation and PanAfrican Investment, a private investment firm.
The firm built 50 units of the first model in 2015 followed by Mobius II in 2018 and Mobius III in 2021. However, the startup failed to capture the attention of the Kenyan market which is saturated with second-hand automobiles from European and Asian companies.
In the long run, this led to a struggle in sales and a general strain on maintaining its finances and is now closing down.
