Kenya’s Mobius Motors, known for its affordable SUVs made for African roads, is closing down due to financial issues.
The company, which began a decade ago, confirmed the decision on Tuesday, citing unsustainable tax hikes in Kenya.
Mobius was founded by a London-born investor who had seen Africa’s rough roads firsthand.
Tax increases in East Africa made the company’s business model unviable, according to a shareholder source who wished to remain anonymous.
The company explored relocating production to another country but found it impractical due to the complexities of moving the assembly line from Nairobi.
This option was ultimately deemed unfeasible.
Originally, Mobius offered a basic SUV priced at 1.3 million Kenyan shillings (around $13,000), half the cost of imported used vehicles.
It later released upgraded versions with additional features.
Investors like Playfair Capital had hoped Mobius would contribute to job creation alongside other local manufacturers like Uganda’s Kiira Motors and Nigeria’s Innoson Motors.
However, competition from second-hand imports and global automakers’ investments proved challenging.
