Kenya’s only homegrown automaker Mobius Motors, which had announced last week that it was shutting down operations due to financial difficulties, has received a last-minute investor in a surprise takeover.

Mobius, which has been in operations for 13 years, said in a public notice it accepted a bid for the acquisition of 100 per cent of its shares by an undisclosed buyer.

"Both parties are looking to close the transaction within 30 days,” reads the notice, signed by Mobius director Nicolas Guibert.

A meeting between Mobius and its creditors that was supposed to be held on Thursday was postponed to allow acquisition negotiations to proceed.

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On August 9, Business Daily reported that two dealers were considering acquiring the cash-strapped carmaker with the prospect of rescuing the brand.

Founded in 2009 by London-born Joel Jackson, Mobius Motors sought to meet the need for durable, low-cost vehicles in Africa.

The company produced boxy, no-frills SUVs priced at $10,000 (approximately Rwf13 million), significantly cheaper than imported second-hand SUVs.

The start-up built 50 units of its first model after which it released Mobius II in 2018 and Mobius III in 2021.

It raised $56 million over its lifetime. However, the firm could not overcome several critical hurdles such as a small market for its new vehicles, high costs of production, competition from other automakers, and the struggle to appeal to African consumers.