CMC Motors Group is shutting down its operations in Kenya, Tanzania, and Uganda, ending its four decades of business in the region thanks to sharp economic pressures.
The company, acquired by Dubai-based Al-Futtaim Group in 2014, attributes the decision to exit the East African market to sustained market challenges, including tough economy, currency depreciation, and rising operational costs.
“This decision follows a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation, and rising operational costs,” the firm said in a statement issued on Friday, January 17.
It emphasized that it is committed to supporting its employees during the transition and will ensure a smooth and orderly wind-down in adherence to all relevant agreements and regulations.
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“Over the past 40 years, CMC Motors Group has played a vital role in supporting East Africa’s agricultural sector through the delivery of quality service, mechanization solutions, and steadfast support to its customers. However, despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward,” the company said.
