Mobius, established by a London-born investor who encountered Africa’s challenging roads while working in Kenya’s forestry sector, encountered unsustainable tax hikes in the East African country, according to shareholder source.
“The business couldn’t continue due to various challenges,” said an unnamed source.
The management considered relocating production but abandoned the idea due to the logistical difficulties of moving the assembly line from Nairobi.
Initially, Mobius manufactured a basic, boxy SUV priced at 1.3 million Kenyan shillings (around $13,000), roughly half the cost of an imported used SUV.
Mobius later introduced updated models with additional features. The company, backed by investors like Britain’s Playfair Capital, was part of an effort by investors and governments across Africa to create jobs through local vehicle manufacturers.
Similar initiatives included Uganda’s Kiira Motors, Ghana’s Kantanka, and Nigeria’s Innoson Motors.
Concurrently, global automakers such as Japan’s Toyota and Germany’s Volkswagen increased their investments in markets like Kenya and Rwanda to capitalize on growing economies and rising consumer demand.
All these companies encountered similar issues, including intense competition from imported used vehicles.
The company, which was privately held, announced that creditors will convene on August 15 to vote on the proposed voluntary liquidation, as reported in a newspaper statement.