Kenya’s first locally manufactured car, the Nyayo Pioneer I, backed by President Daniel Arap Moi, was a symbolic project that never progressed beyond the Nairobi railway headquarters’ assembly plant. Intended more as a political statement than a genuine push for industrialization, the initiative consumed millions without producing a single vehicle for the road.
Now, thirteen years later, the country’s latest attempt at producing homegrown vehicles has faltered. Mobius Motors, Kenya’s sole local vehicle assembler, has shut down its plant and opted for voluntary liquidation. This decision was driven by a combination of low demand for new vehicles, a burdensome debt portfolio, and a legal dispute with the Kenya Revenue Authority (KRA).
Mobius Motors, founded by British entrepreneur Joel Jackson in 2010, initially aimed to provide affordable SUVs for SMEs in infrastructure and agribusiness. Despite raising $56 million across several funding rounds, the company has struggled with financial instability. By 2020, Mobius faced a significant debt of Sh649.2 million and a shareholder deficit of Sh389.1 million.
The company’s financial woes led to difficulties in settling supplier payments and employee salaries. On Monday, Mobius’s Director, Nicolas Guibert, announced the company’s decision to liquidate, following a meeting of shareholders. The liquidation process, managed by KVSK Sastry, will involve selling off assets to pay creditors.
Despite efforts to promote local vehicle assembly, the Kenyan automotive market remains dominated by used imports, primarily from Japan. Recent statistics reveal a 15 percent decline in new vehicle sales, attributed to high inflation and the depreciating shilling.
Mobius Motors’ models, including the Mobius I, II, and III, received mixed reviews, with criticisms centered on their minimalist design despite competitive pricing. Despite receiving funding from various investors, including Chandaria Industries and the U.S. International Development Finance Corporation, Mobius was unable to overcome the market’s challenges.
The liquidation of Mobius Motors highlights the ongoing difficulties in Kenya’s automotive industry, reflecting broader trends of low demand for new vehicles and the economic hurdles facing local manufacturers.
