Kenya’s Mobius Motors Saved From Collapse by Little-Known Middle East Company

Mobius Motors, Kenya’s first homegrown car manufacturer, has been acquired by Silver Box, a little-known company described as “Middle East-based investment firm specializing in corporate management and advanced technology”. The acquisition marks a significant turnaround for Mobius, which faced voluntary liquidation in August 2024 due to overwhelming financial struggles.

The entry of Silver Box not only revives Mobius but also introduces an ambitious expansion strategy, including the resumption of vehicle production and the launch of a new model by December 2025. This deal presents an opportunity for Kenya’s auto industry to regain a foothold in local car manufacturing.

The Downfall: Why Mobius Motors Collapsed in 2024

In August 2024, Techish Kenya reported the voluntary liquidation of Mobius Motors. The automaker, which had positioned itself as Kenya’s pioneering automotive brand, was forced to shut down due to unsustainable financial pressures.

We argued that the Key Reasons for Mobius’ Liquidation at the time included:

1. High Competition from Imported Vehicles – The market was dominated by cheaper second-hand imports from Japan, the UK, and other markets, making it difficult for Mobius to compete.
2. Funding Challenges – Despite raising $56 million in five funding rounds, Mobius struggled to scale and lacked the financial backing to sustain production.
3. Lack of Government Support – Unlike local industries that thrive under state-backed initiatives, Mobius did not receive strong institutional support. Had government agencies prioritized Mobius for public vehicle procurement, it could have secured a stable market.
4. Legal and Tax Issues – In 2021, Mobius faced a KES 73 million tax demand from the Kenya Revenue Authority, leading to legal battles that further strained its finances.
5. Operational Struggles – Mobius vehicles were built for rugged terrain, but consumer demand for huge SUVs was lower than expected. The business model of relying on pre-orders to manage costs proved unsustainable.

By August 5, 2024, Mobius’ shareholders voted to place the company into voluntary liquidation under Kenya’s Insolvency Act 2015, appointing a liquidator to oversee the process. This seemed like the final chapter for Kenya’s first car manufacturer.

Silver Box Steps In: A Second Chance for Mobius Motors

In a dramatic turn of events, Middle East-based investment firm Silver Box entered negotiations in August 2024, leading to a successful acquisition by October 2024. This was only announced in March 2025 by a tweet from Mobius Motors.

Silver Box, described as a company specializing in driving businesses forward through intelligent investment, expert corporate management, and advanced technology, identified Mobius as a strategic investment.

Following regulatory approval from the Competition Authority of Kenya, which found the deal posed no competition risks, Silver Box officially took control in early 2025.

What’s Changing Under Silver Box?

With the acquisition finalized, Mobius Motors is now on a revival path, with major operational changes:

1. Resumption of Operations – The Mobius Motors Nairobi Service Center has re-opened, resuming vehicle servicing for existing customers.
2. Production Restarting – Manufacturing of the Mobius 3 model will resume by July 2025. This will be the first production cycle under Silver Box’s ownership.
3. New Model Incoming – A brand-new 4×4 off-road SUV is scheduled for launch in December 2025, signaling a strong return to the market.
4. Leadership Overhaul – John Kavila has been appointed as Chief Operating Officer, replacing outgoing CEO Nicolas Guibert.

Kavila, a seasoned manufacturing and operations specialist, emphasized his focus on market expansion and increasing accessibility for Kenyan consumers. He stated that the goal is to ensure Mobius is competitive in the local and regional markets.

Meanwhile, outgoing CEO Nicolas Guibert expressed optimism about the transition, saying he is happy to hand over to John Kavila, who will get the financial backing and strategic direction needed to take Mobius to new heights.

Implications for Kenya’s Auto Industry

The return of Mobius Motors under Silver Box’s ownership carries several implications for Kenya’s automotive and manufacturing industries:

• Increased Local Manufacturing – A renewed focus on made-in-Kenya vehicles could reduce reliance on imported second-hand cars.
• Potential Job Creation – The re-opening of production could restore employment for factory workers, engineers, and assembly line staff.
• Stronger Automotive Competition – Mobius’ comeback could shake up the auto sector, particularly if pricing and features improve to rival international brands.

Despite these positives, challenges remain. Mobius must find a way to compete against the flood of imported vehicles while ensuring financial sustainability under the new ownership.

Final Thoughts: A Second Chance for Mobius?

The revival of Mobius Motors is an unexpected but hopeful development for Kenya’s automotive industry. After facing years of financial struggles, intense market competition, and liquidation, Mobius is now set for a comeback under Silver Box.

However, the big question remains: Will this second chance succeed where the first failed? That will depend on how well Silver Box manages operations, whether new models capture consumer demand, and whether government policies offer support for local manufacturers.

For now, Kenya’s first homegrown car brand has survived against the odds, but whether it thrives remains to be seen.