Kenya’s Mobius Motors avoids liquidation with 11th-hour buyout deal

Mobius Motors, Kenya’s pioneering carmaker known for producing affordable SUVs tailored for Africa’s rugged terrain, has accepted a takeover bid from an undisclosed buyer, averting the threat of voluntary liquidation. The company, which was founded over a decade ago, has been struggling with financial difficulties, including debt and high taxes.

In a statement released on Thursday, Mobius Motors announced that both parties aim to finalise the deal within 30 days. However, the identity of the buyer and the financial terms of the agreement remain confidential.

Joel Jackson, the London-born entrepreneur who founded Mobius Motors, launched the company after witnessing firsthand the challenges posed by Africa’s rough roads while working for a forestry company in Kenya. Mobius gained attention for its no-frills, boxy SUVs, initially priced at around 1.3 million shillings ($13,000), which offered a more affordable alternative to imported second-hand vehicles.

Despite its innovative approach, Mobius has faced numerous challenges in recent years. High interest rates and stiff competition from imported second-hand vehicles have significantly dampened demand for locally manufactured cars. “The current economic environment has been particularly challenging for new car manufacturers,” said an industry executive familiar with the situation.

Mobius Motors is part of a broader effort by African governments and investors to foster home-grown vehicle manufacturing. Other players in this space include Uganda’s Kiira Motors, Ghana’s Kantanka, and Nigeria’s Innoson Motors. Global automotive giants such as Japan’s Toyota and Germany’s Volkswagen have also increased their investments in African markets like Kenya and Rwanda, seeking to capitalize on growing economies and rising consumer demand.

However, these efforts have often been undermined by the dominance of second-hand vehicle imports, which remain more affordable for many consumers. Despite these challenges, the acquisition of Mobius Motors marks a turn-around moment in Kenya’s automotive industry, as the company continues to strive for sustainability and growth in a competitive market.

Read more on Mobius Motors: Rising taxes, competition ends Kenyan SUV maker’s journey