Mobius Motors resumes operations after acquisition by Middle East company

Troubled Kenyan car assembler Mobius Motors is resuming operations after being acquired by a Middle Eastern buyer.

The company, founded by British businessman Joel Jackson in 2010, last August announced it had appointed a liquidator to wind it up after struggling with debts.

On Tuesday, Mobius said it had been bought by Silver Box, a company “that specializes in driving businesses forward through intelligent investment, expert corporate management and advanced technology.”

It said the buyer is based in the Middle East, without giving further details.

Before its financial woes, Mobius had produced three SUVs: the Mobius I, II and III models.

In the wake of the buyout, the company said it has re-opened and resumed operations at its Nairobi service centre, while production and manufacturing for the Mobius III model will resume fully by July.

Mobius also plans to launch a new model by December.

At the same time, the car assembler saw a leadership overhaul; John Kavila was appointed chief operating officer (COO), taking over from outgoing chief executive Nicolas Guibert.

“Mobius Motors has built an exceptional foundation, and we are eager to build on this success by focusing on expanding our market share and increasing accessibility for Kenyan consumers,” Kavila said.

“I'm happy to hand over to John Kavila, who will pursue the development of Mobius Motors… [He] will get the visionary and financial support from Silver Box to successfully expand the brand's market share, introduce newer models, develop a network of Service stations, and make of Mobius Motors a major player on the African continent,” Guibert said.

The Competition Authority of Kenya (CAK) said it approved the acquisition per the requirement that merging parties whose combined turnover or assets, whichever is higher, is over Ksh.1 billion seek approval from the Authority before implementing the transaction.

“Upon analysis of the information provided by the parties in their application, the Authority determined that their combined turnover/assets were below the set threshold and, therefore, the transaction was approved in October 2024,” CAK Director-General David Kemei said.

“Owing to the parties’ combined size, the transaction will not raise competition or public interest concerns. In this case, the transaction will salvage a failing firm, thereby securing jobs and enabling the business to continue contributing positively to the economy.”

Its backers comprised the U.K.-based venture capital firm Playfair Capital, Chandaria Industries, the U.S. International Development Finance Corporation and private investment firm PanAfrican Investment.