Mobius Motors Kenya, an automaker that was to provide versatile vehicles for Kenya’s challenging terrains, reached the end of the road Friday after 13 years. It announced its voluntary liquidation due to a lack of funding.
“Our shareholders have not given us new capital,” said Michael de Souza, Mobius commercial director. The company had tried to find new investors but did not succeed, hence the decision to close down. A shortage of vehicles due to the funding shortfall hurt sales.
Founded in 2011 by British entrepreneur Joel Jackson, Mobius earned its stripes in 2015 with Mobius I, a hardcore, cheap SUV for African roads. The company had big plans to increase output and conquer at least two more East African markets: Uganda and Tanzania. This was snatched a few days ago when shareholders agreed to liquidate the company in line with the Insolvency Act.
“At a meeting of the shareholders held on 5-Aug-2024, it was resolved to place the company under liquidation,” said Nicolas Guibert, Mobius’ CEO.
In 2018, KRA claimed Sh85.74 million in taxes from Mobius, dealing the firm another blow to its financial health. The company lost the case after filing an appeal. The financial statement for Mobius showed huge liabilities and a shareholder deficit, thus highly vulnerable.
Mobius did not stop there. It unveiled the Mobius III in 2021 at a cost of $43 000, a price increase of $13,000 from its predecessor, the Mobius II. The vehicle had, however, been fitted with extra features. The challenges, including the COVID-19 pandemic, made it hard for the company to sustain its operation.
The creditors are set to meet next week to vote for the appointment of KVSK Sastry as the liquidator—marking the end to the journey of Mobius in Kenya.