CMC Motors Group has announced plans to cease operations in Kenya, Tanzania, and Uganda, marking the end of over 40 years of business in the region.
In a statement, the company, owned by CMC Holdings Ltd and acquired by the Al-Futtaim Group in 2014, explained that the decision aligns with local regulations and distributorship agreements.
The move follows a comprehensive review of the company’s operations, with CMC citing persistent market challenges, including economic pressures, currency depreciation, and escalating operational costs.
“For over 40 years, CMC Motors Group has been instrumental in supporting East Africa’s agricultural sector by providing quality service and mechanization solutions,” the statement read.
Despite undertaking a restructuring process and launching a transformation program in 2023, the company acknowledged that prevailing market conditions had failed to create a sustainable path for growth.
The company also assured stakeholders of its commitment to a smooth transition, pledging to support employees during the wind-down and to adhere to all relevant agreements and regulations.
CMC Holdings Ltd oversees several subsidiaries, including Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd, and a 33% stake in Kenya Vehicle Manufacturers Ltd.
