Nairobi — Kenyan vehicle manufacturer Mobius Motors is set to close Kenyan business after its shareholders approved plans to place the firm under liquidation.

The automaker also appointed KVSK Sastry as the liquidator to help in the winding up of the company.

Liquidation involves the orderly winding up of the company's affairs, settling debts, and distributing any remaining assets to the shareholders.

"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," Mobius Motors Kenya Director Nicolas Guibert said 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 was founded in 2011 by British Joel Jackson with an aim to build a vehicle in Africa for the continent.

It began with the first-generation Mobius 2 (Sh1.5 million) that was launched in the country in 2015. The firm later rolled out Mobius 3 (Sh3.9 million).

In 2020, the firm received $5 million from the US government's development finance institution, Oversees Private Investment Corporation, to establish a new plant.

It then said that the new unit will be equipped with quality testing, fabrication of the car frame, painting, anti-corrosion treatment, et cetera.