Kenyan automaker Mobius Motors has announced that it is closing its operations and going into liquidation. The company, which assembles vehicles in Kenya, made the decision after a stakeholders’ meeting, according to Mobius’s Director Nicolas Guibert, who issued a voluntary insolvency notice on Monday.
Liquidation is the process of closing a business and distributing its assets to creditors, typically occurring when a company is unable to meet its financial obligations. Guibert also mentioned that KVSK Sastry has been appointed to manage the liquidation process.
“At a shareholders meeting held on August 5, 2024, it was decided to liquidate the company in accordance with Section 393(1) (b) of the Insolvency Act, appointing KVSK Sastry as the liquidator to wind up the company,” the notice stated.
Guibert added that a list of creditors and proxy forms will be made available for inspection on Friday, August 9, at Mobius’s head office located at the Sameer Business Park in Nairobi.
During liquidation, the company’s remaining assets will be used to settle debts owed to creditors and shareholders, following the priority of their claims.
Founded by British entrepreneur Joel Jackson, Mobius Motors launched its first vehicle, the Mobius I, in 2014. The compact SUV received mixed reactions in Kenya, with some people criticizing its basic design despite its initial price of Ksh.1.3 million.
Since then, Mobius Motors released the Mobius II and Mobius III models, which are more refined but still rugged SUVs, priced at Ksh.1.5 million and Ksh.3.9 million, respectively, as of 2022.
Kenya’s automotive market is largely dominated by imported used cars from Japan. The government has been working to enhance local vehicle assembly by attracting investments from global car manufacturers like Volkswagen. However, new vehicle sales in Kenya declined by 15 percent last year.
According to data from the Kenya Motor Industry Association, 11,370 units were sold in 2023, a decrease from 13,352 units sold in 2022. Dealers attributed this decline to high inflation and a weakening shilling, which increased both product prices and production costs.