Mobius Motors, a Kenyan vehicle assembly company, has declared that it will be liquidated.
Mobius’ Director Nicolas Guibert submitted a creditors’ voluntary insolvency notice on Monday, citing a stakeholder meeting earlier that day.
Liquidation is the process of winding down a business and allocating its assets to claimants. It occurs when a firm is insolvent, meaning it is unable to pay its debts.
Guibert said KVSK Sastry has been appointed to oversee the liquidation process.
“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,” read the notice.
He added that on Friday, August 9, a list of creditors and proxy forms will be made available for examination at Mobius’ headquarters in Nairobi’s Sameer Business Park.
During liquidation, the residual company assets are used to pay creditors and shareholders according to the priority of their claims.
British businessman Joel Jackson founded Mobius Motors, and the company’s first car was unveiled in 2014.
Kenyans reacted differently to the compact SUV, Mobius I, with some criticizing its stripped-down appearance despite its Ksh.1.3 million price tag at the time.
The carmaker has subsequently followed up with Mobius II and Mobius III models, which are spruced-up but still robust SUVs priced at Ksh.1.5 million and Ksh.3.9 million, respectively, in 2022.
Kenya’s automotive industry is dominated by used imports from Japan, and the government has been working to increase local vehicle assembly, drawing investments from foreign automakers like Volkswagen.
Even so, the sale of new vehicles in Kenya fell 15% last year.
According to data released this month by the Kenya Motor Industry Association, people and businesses purchased 11,370 vehicles in 2023, a decrease from 13,352 in 2022.
Dealers ascribed the reduction to rising inflation and the shilling’s depreciation, which raised goods prices as well as production expenses.
