Mobius Motors: From Ruins to Revival!

Hi there 👋🏿 It's Brian from The Kenyan Wall Street 

In today's edition, Uber wants to get rid of old vehicles as it seeks to upgrade its eligibility criteria. Also, look out for its new product in the market.

But first, the story of Mobius Kenya may just not be over yet.

Mobius Motors: From Ruins to Revival!

Could this be a comeback story?

Mobius Motors, Kenya’s homegrown SUV maker, has been rescued from the scrapyard by Middle Eastern firm Silver Box, which plans to reboot production by July 2025.

The company, which folded in August 2024 under the weight of massive debt and a KSh 73 million tax bill, will now see new models hit the market by year-end. Silver Box aims to expand Mobius’ market to Uganda and Tanzania, while also building a network of service centers.

The new COO, John Kavila, insists they’re not just reviving Mobius but supercharging it for Africa. Whether this comeback story ends in triumph or another breakdown remains to be seen. Here is what they plan to do…

CBK Proposes Revenue-Based Banking Licence Fees

The move is intended to simplify the licensing process.

The Central Bank of Kenya (CBK) has proposed a new banking licence fee model under the Banking Regulations 2025, shifting from a branch-based approach to a Gross Annual Revenue (GAR) model, where fees will be based on a bank’s audited revenue from the previous year.

The transition will be gradual, starting at 0.6% in 2025, increasing to 0.8% in 2026, and reaching 1% in 2027, with CBK projecting KSh 4.5 billion in revenue in the first year. The new model is expected to reduce bank profitability by 1.8% to 3.1% over three years, significantly lower than alternative models. CBK has also proposed simplifying the licensing process by abolishing other application fees, with implementation pending parliamentary approval. Stakeholders are expected to submit feedback by March 31, 2025.

What's Up on Uber!

Getting Rid of Old Vehicles, introducing a new product in the Kenyan market 

• Uber is updating its vehicle eligibility criteria in Kenya, requiring newer models for Uber ChapChap and Uber Comfort starting in 2025, which could leave many drivers without income. The company recently scrapped UberX and UberXL, directing partners to Uber Comfort, while also planning to introduce a new product for larger vehicles. Kenya's ride-hailing market, dominated by Uber and Bolt, is projected to grow significantly, with revenue expected to reach $82.87 million by 2029. While some drivers are concerned about the impact of Uber's policy changes, others believe alternative platforms with more flexible vehicle requirements will sustain their income.

A New Product

• Uber has launched Uber One in Kenya, a membership program offering discounts and exclusive benefits on rides, deliveries, and groceries for Ksh 280 per month or Ksh 2,800 annually. Members receive Uber credits, zero delivery fees, reduced service fees, and exclusive offers, along with access to top-rated drivers and premium support. Uber executives highlight the program as a way to enhance convenience and affordability for everyday mobility and delivery needs.

Court Fines KQ for Unfair Retirement

The airline was required to compensate an employee it unfairly dismissed 

The Employment and Labour Relations Court found Kenya Airways (KQ) guilty of unfairly retiring Fredrick Odero Ayuya on medical grounds without a fair hearing. Despite KQ’s justification that Ayuya had chronic back pain and was recommended for lighter duties before being retired, the court ruled that the airline failed to follow due process as required by the Employment Act. The court emphasized that Ayuya should have been given an opportunity to be heard with a representative present before termination. As a result, KQ was ordered to compensate Ayuya with four months' salary.

On your watchlist

Have a great evening!