Kenya's only homegrown automaker, Mobius Motors Kenya, is shutting down after 13 years of operations.
The company that aimed to revolutionise the African automotive market with rugged, affordable SUVs, has entered voluntary liquidation after a year of unsuccessful rescue efforts.
The company has been facing a series of financial challenges including increasing debt and has struggled to pay its employees.
"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," read a notice from Mobius director Nicolas Guibert.
Founded a decade ago (2009) by London-born Joel Jackson, Mobius Motors sought to meet the need for durable, low-cost vehicles in Africa.
The company produced boxy, no-frills SUVs priced at 1.3 million Kenyan shillings (approximately $10,000), significantly cheaper than imported second-hand SUVs.
The start-up built 50 units of its first model after which it released Mobius II in 2018 and Mobius III in 2021.
The company raised $56 million over its lifetime. However, it could not overcome several critical hurdles such as a small market for its new vehicles, high costs of production, competition from other automakers, and the struggle to appeal to African consumers.
