Kenya’s Mobius Motors, the innovative company known for producing rugged, low-cost SUVs tailored for African roads, has announced its closure.
This comes a decade after its inception, driven by insurmountable financial challenges, as stated by the company and confirmed by a shareholder source on Tuesday.
Founded by a London-born investor who experienced Africa’s notoriously bumpy roads while working for a forestry company in Kenya,
Mobius Motors aimed to provide durable, affordable vehicles for the continent. Initially, the company produced a no-frills, boxy SUV priced at 1.3 million Kenyan shillings (approximately $13,000), targeting budget-conscious African consumers. Over time, Mobius introduced updated models with additional features.
However, a series of tax hikes in Kenya rendered Mobius’ business model unsustainable. “The business could not sustain itself. There were some challenges,” stated a source from one of the company’s shareholders, who requested anonymity.
Although the owners considered relocating production to another country, the logistical difficulties of moving the existing assembly line from Nairobi proved too great.
Mobius Motors was part of a broader initiative by investors and African governments to stimulate job creation through local vehicle manufacturing. This initiative also included Uganda’s Kiira Motors, Ghana’s Kantanka, and Nigeria’s Innoson Motors.
Despite these efforts, Mobius struggled to compete in a market also attracting significant investments from global automakers such as Japan’s Toyota Motor Corp and Germany’s Volkswagen AG, who expanded their presence in Kenya and Rwanda to capitalize on the region’s growing economies and rising consumer demand.
