Kenyan car manufacturer Mobius Motors Ltd has announced its closure through liquidation.
In a shareholder meeting on August 5, 2024, the company decided to voluntarily wind down its operations. KVSK Sastry has been appointed as a liquidator to oversee the process.
A creditors’ meeting will be held on August 15, 2024, at the Mobius Factory in Nairobi to approve the liquidator’s appointment. Creditor information will be available for inspection at the company’s offices on August 9, 2024.
Government to Rescue Struggling Mobius Motors
The Kenyan government is exploring options to save struggling car manufacturer Mobius Motors from liquidation.
Principal Secretary for Investment Promotion, Abubakar Hassan Abubakar, announced on Wednesday, August 7, 2024, that says the government is considering intervention after visiting the company’s factory.
“We are exploring corporate recovery, restructuring, and rescue mechanisms,” Abubakar stated, adding that the government plans to facilitate investment in distressed companies like Mobius.
Upon noticing the proposed Voluntary winding up by Mobius Motors, together with CEO KAM, we visited the leadership of the company led by the Kenyan Director, Mr John to understand the causes of the winding up. We explored corporate recovery, restructuring, and rescue mechanisms… pic.twitter.com/46nVnmqUJl
— PS Abubakar Hassan Abubakar (@PSAhassan) August 7, 2024
Founded in 2011 by British businessman Joel Jackson, Mobius Motors aimed to produce affordable cars for the African market. Its first model, the Mobius II, launched in Kenya in 2015.
Mobius Motors has a debt of KES 649.2 million and a shareholders’ deficit of KES 389.1 million as of August 2020.
A 2021 tax dispute of a KES 73 million tax demand by the Kenya Revenue Authority (KRA) exacerbated the company’s precarious financial position.