Kenyan Car Maker Mobius Receives Sh500 Million from US Gov't to Build Factory

The United States has issued a Sh500 million loan to Kenyan car manufacturer, Mobius to enable it build a new plant.

Mobius said the loan by the US government’s development finance institution Overseas Private Investment Corporation (Opic) will be used to equip its new factory in Nairobi with new technology that enables end-to-end production capabilities.

This will enable the new plant, to be opened mid this year, perform processes such as fabrication of the vehicle frame, anti-corrosion treatment, general assembly, painting, final inspection and quality testing.

The factory will also have a research and development arm as Mobius looks to churn out 1,900 additional vehicles by 2019. So far, the manufacturer has sold 50 units, all made at Thika-based motor vehicle assembler, Kenya Vehicle Manufacturer.

“We believe that the growth of manufacturing will be a vital part of Kenya’s industrialisation story over the next decade and beyond, and Mobius will play a key role in realising this vision,” said Mobius Motors, chief executive office, Joel Jackson.

“With our first generation model, we proved that a car can be designed, developed, and built here. As we prepare to launch our new Mobius II model, the stage in our evolution is to establish our own production capacity,” said Mr Jackson.

The loan from Opic is part of a Sh1.1 billion ($11 million) financing Mobius received from investors including New York-based PanAfrican Investment Co.

The new model of Mobius vehicle goes for Sh1.58 million and has advanced features including power steering, sealed side windows and lockable doors.

“Mobius has developed an innovative solution to the shortage of affordable transportation in Africa, which is one of the biggest hurdles to economic growth,” said Ray Washburne, Opic president and CEO.