The 1st Generation Motorola Moto E Android smartphone has a 5 megapixel camera with fixed focus. It is a great camera for taking outdoor pictures. But when it comes to taking pictures of nearby objects, the camera gives poor quality blurred images. This is because of lack of auto focus. The truth is there is not way to fix this using any software or apps available on Google Playstore. Lollipop update will not fix this problem! You won't fix this issue by rooting the phone or flashing with a different ROM. The reason is that this is a hardware limitation. The lens on Moto E 1st generation does not have auto focusing capabilities. The only way you can make it work is by changing the lens, which I don't know if is a feasible option. So let's say it is impossible to get auto focus on this phone.
But don't lose hope already! I have figured out a way to fix the problem partially. Now, we know people with far-sightedness or long-sightedness have a difficult time seeing nearby objects and reading newspapers/books without glasses. Let's say our Moto E is a bit long-sighted. So it needs glasses to see nearby things. So what do we do? We make it wear glasses! That's right, get a magnifier!
We all have played around with magnifying glasses when we were kids. You can easily get one for Rs.50 or less from a supermarket or even a toy shop. So get one!