Kenya’s motor vehicle industry is poised for a significant overhaul as Middle East-based investor Silver Box takes over Mobius Motors Kenya.
Mobius Motors, who produced rugged, locally made vehicles, had been a bastion of local auto technology for decades but has faced financial setbacks in recent years. Under Silver Box, the venture is poised to grow and get a facelift.
A New Era for Mobius Motors
Since first opening its doors in 2010, Mobius Motors has led the charge in developing tough and affordable vehicles specifically designed for the rugged and challenging road conditions found in Kenya. Over the last 14 years, substantial investment has been made by the company in creating a sound bedrock local vehicle production, including securing $56 million in investments from prominent backers, including Playfair Capital, Chandaria Industries, the U.S. government’s Development Finance Corporation (DFC), and Pan-African Investment.
In 2014, Mobius rolled out its first model priced at the pocket-friendly sum of $10,000 (KES 1.3 million), making it an affordable alternative to high-priced SUVs. Even though it has expanded its brand through Mobius I, II, and III, sales have struggled against the overwhelming rush of secondhand imports from Japan, the UK, and Asia, which are still most affordable to most buyers.
Yet, they managed production costs through a pre-order mechanism where customers paid refundable deposits, but demand wasn’t as great as anticipated. By August 2024, the company was forced into voluntary liquidation due to financial challenges. A scheduled creditors’ meeting was postponed after an unexpected acquisition offer surfaced on August 14. Reports suggested that two automotive dealers had expressed interest, while Kenya’s Trade Ministry explored possible interventions to keep the company afloat.
Already, the Silver Box has restated Mobius Motors’ service center and resumed vehicle servicing under the new acquisition. Mobius 3 production is expected to resume ramping up by July 2025, and an entirely new model of a 4×4 off-road SUV will be launched in December 2025. A new phase for the company will start, emphasizing wider access and market.
Leadership Transition and Strategic Vision
A key part of this transition is the appointment of John Kavila to the new role of Chief Operating Officer (COO) of Mobius Motors. With his diversified experience in manufacturing, operations, and customer service, he is expected to navigate the strategic growth and innovation of the company.
“I am deeply honored to lead Mobius Motors at this crucial juncture in its life,” said Kavila. “With the solid foundation laid behind us, our focus will now be on increasing market share and making our vehicles available to the Kenyan consumer. ”
Outgoing CEO Nicolas Guibert commented that he is confident in the direction of Silver Box and the firm under Kavila, as the backing of the investment firm will provide the necessary resources and road map for scaling Mobius Motors.
What This Means for Kenya’s Automotive Industry
The introduction of the Silver Box into the Kenyan automotive market is an innovation and sustainability commitment. The company wants to improve local vehicle production, widen the service network, and place Mobius Motors competitively within Africa’s automotive arena.
With renewed investment, a leadership shake-up, and a clear roadmap for expansion, Mobius Motors aims to redefine locally manufactured vehicles. As production ramps up, more versatile and high-end models for Kenya’s varied driving conditions will soon be on the roads in Kenya.
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