Mobius’s Director Nicolas Guibert issued a creditors’ voluntary insolvency notice on Monday, saying the decision followed a stakeholder meeting earlier in the day.

Liquidation involves bringing a business to an end and distributing its assets to claimants. It occurs when a company is insolvent – when it cannot 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 a list of creditors and proxy forms will be released for inspection on Friday, August 9, at Mobius’s head office at the Sameer Business Park in Nairobi.

During liquidation, the remaining company assets are used to pay creditors and shareholders based on the priority of their claims.

Mobius Motors was founded by British businessman Joel Jackson in 2010 and its first car was unveiled in 2014.

The compact SUV, Mobius I, was met with mixed reactions from Kenyans, with some criticising its stripped-down look despite its Ksh.1.3 million price tag then.

The automaker has since followed it up with Mobius II and Mobius III models, which are spruced-up but still rugged SUVs priced at Ksh.1.5 million and Ksh 3.9 million respectively as of 2022.

Mobius was backed by Playfair Capital and in 2019 it raised $50 million from the the U.K.-based venture capital firm. 

Over the years, it has also received funding from Chandaria Industries, the U.S. International Development Finance Corporation and PanAfrican Investment, a private investment firm.

Kenya’s car market is dominated by used imports from Japan and the government has been striving to boost local vehicle assembly, attracting investments from global automakers such as Volkswagen.

Even so, the sale of new vehicles in Kenya dipped 15 per cent last year.

Data from the Kenya Motor Industry Association last month showed that individuals and businesses bought 11,370 units in 2023, down from 13,352 units sold in 2022.

Dealers attributed the drop to high inflation and the depreciating shilling, which shot up the prices of products as well as production costs.