News and Analysis
March 20, 2025
Kenya’s struggling car manufacturer, Mobius Motors has roared back to life from the scrap yard. Silver Box, a Middle East-based investment firm has acquired the troubled car company for an undisclosed amount of money.
The move now offers a lifeline to the Nairobi-based manufacturer, which was facing shutdown following financial headwinds in recent years.
Silver Box, describing itself as specialising in “driving businesses forward through intelligent investment, expert corporate management, and advanced technology,” announced the acquisition on Tuesday last week.
In a press release, the Kenyan company painted an optimistic picture, proclaiming a “bold new chapter” for both Mobius and Kenya’s automotive industry.
Silver Box will inject the much-needed capital into Mobius, potentially enabling the company to address its lingering debt and invest in crucial areas such as research and development, expanded production, and a strengthened distribution and service network.
Mobius’s positive net asset position of nearly Ksh1.98 billion, underpinned by its tangible assets and ongoing contracts, is what won over the Middle Eastern investor
Mobius Motors' early success in manufacturing robust vehicles designed to withstand demanding conditions at a more accessible price also worked to convince Silver Box to come on board.
Priced at Ksh1.3 million (about $13,000), roughly half as much as an imported second-hand SUV, the company’s first model, the Mobius II, hit the Kenyan market in 2015.
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Fueled by a burgeoning middle class, increasing urbanization, and a youthful population eager for mobility, the African Silver Box believes the Kenyan automotive market is ripe for success.
More than 96% of vehicles imported to Kenya are used vehicles, signaling room for new, and affordable cars at half the cost.
The Mobius III, for example, retails for approximately Ksh5.6 million, significantly less than imported competitors like the Toyota Land Cruiser Prado. This has made Mobius vehicles attractive to small and medium-sized enterprises (SMEs) in sectors such as agriculture, infrastructure, and supply chains operating in remote areas of Kenya and now potentially across the East African region and Africa at large.
The Africa Automotive Market size is estimated at USD 21.55 billion in 2025, and is expected to reach USD 27.63 billion by 2030, at a CAGR of 5.1% during the forecast period (2025-2030), according to Mordor intelligence report.
The industry is witnessing increased collaboration between international manufacturers and local stakeholders to develop domestic production capabilities. The need for cost-effective transportation solutions like Mobius motors remains the driving force.
With Silver Box on board, full production of the Mobius 3 model is now back on track and slated to hit the market in July 2025. A new 4×4 off-road SUV model is also slated for launch by December 2025.
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After more than 13 years in operation, Mobius Motors ground to a halt in 2024. Rising debts and a fierce tax battle with the Kenya Revenue Authority (KRA) cut short the motor company's journey.
In 2018, KRA slapped Mobius with a Ksh85.74 million fine related to capital received from its parent company between January 2014 and December 2016.
As of the end of August 2020, the company had a debt pile of Ksh649.2 million and a shareholders’ deficit of Ksh389.1 million.
Mobius’s balance sheets indicate that while fixed assets, including its Nairobi production facility, remained robust at over Ksh4.32 billion, current assets — readily available cash and inventory — had dwindled to a mere Ksh1.59 million. On Monday, August 5, 2024, Shareholders resolved to liquidate the company.
Should the new deal hold, Mobius Motors stands to rise from the scrap yard like the proverbial phoenix, and with it, Kenya hopes to give Morocco and South Africa, the leading automotive hubs in Africa, a run for their money.
Only time will tell.
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