Mobius Motors, Kenya’s homegrown automobile assembly company, has declared its intention to cease operations. The company, which had been a symbol of Kenya’s emerging automotive industry, is now facing the stark reality of liquidation.
Nicolas Guibert, the Director of Mobius Motors, released a creditors’ voluntary insolvency notice on Monday, following a crucial stakeholder meeting held earlier that day.
This announcement marks the end of a journey that began with ambitious plans to revolutionize the Kenyan automotive landscape.
Understanding Liquidation
Liquidation is a complex process that effectively brings a business to its final conclusion. It involves the systematic dissolution of a company’s assets, which are then distributed among its creditors.
This drastic step is typically taken when a company finds itself in a state of insolvency, unable to meet its financial obligations and debts.
Appointment of Liquidator
To oversee this intricate process, Guibert announced the appointment of KVSK Sastry as the liquidator. Sastry will be responsible for managing the wind-up of the company in accordance with legal requirements.
Guibert’s official statement read:
“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.”
In a move towards transparency, Guibert also stated that a comprehensive list of creditors and proxy forms would be made available for inspection on Friday, August 9. Interested parties can access these documents at Mobius’s head office, located in the Sameer Business Park in Nairobi.
The Rise and Fall of Mobius Motors
Mobius Motors was the brainchild of British entrepreneur Joel Jackson. The company made its debut in the Kenyan automotive scene in 2014 with the unveiling of its first car model.
This launch marked a significant milestone in Kenya’s automotive industry, representing a bold step towards local vehicle manufacturing.
The company’s inaugural model, the Mobius I, was a compact SUV designed to meet the unique needs of the Kenyan market.
However, its reception was mixed. While some praised the initiative, others criticized the vehicle’s stripped-down appearance, especially considering its price tag of Ksh.1.3 million at the time.
Undeterred by initial criticisms, Mobius Motors continued to innovate and improve its offerings. The company subsequently introduced the Mobius II and Mobius III models.
These newer versions featured enhanced designs while maintaining the rugged SUV concept that defined the brand.
Recent Market Trends
Despite governmental efforts and foreign investments, the Kenyan automotive market has faced recent setbacks. Data from the Kenya Motor Industry Association revealed a significant downturn in new vehicle sales last year.
The association reported that in 2023, only 11,370 units were sold, marking a 15% decrease from the 13,352 units sold in 2022. This decline has been attributed to various economic factors, including high inflation rates and the depreciation of the Kenyan shilling.
