Nairobi, 17th January 2025 – In a major announcement, CMC Motors Group has revealed plans to gradually wind down its operations in Kenya, Tanzania, and Uganda.
This decision marks the end of an era for one of East Africa’s longstanding players in the agricultural and automotive sectors.
The move comes in response to sustained market challenges, including economic pressures, rising operational costs, and currency depreciation.
Despite numerous restructuring efforts and the initiation of a transformation program in 2023, the company concluded that current market conditions no longer support a viable path forward.
A Legacy of 40 Years in the Region
For over four decades, CMC Motors Group has been a pillar in East Africa’s agricultural sector. The company earned its reputation by delivering quality service, innovative mechanization solutions, and steadfast support to farmers and customers across the region.
This announcement brings into focus the difficulties faced by businesses in the region amid fluctuating market dynamics and a tough economic climate. CMC Motors’ decision highlights the broader struggles within industries attempting to adapt to East Africa’s evolving economic landscape.
Supporting Employees During Transition
In its statement, the company reaffirmed its commitment to supporting employees throughout the transition period.
Efforts will be made to ensure a smooth and orderly wind-down, in full compliance with local regulations and distributor agreements.
CMC Motors Group has assured all stakeholders that it will adhere to relevant agreements and legal obligations as the process unfolds.
About CMC Motors Group
Owned by CMC Holdings Ltd, CMC Motors Group was acquired by the Al-Futtaim Group in 2014. The group also owns other subsidiaries in the region, including Cooper Motor Corporation (Uganda) Ltd., Hughes Motors (Tanzania) Ltd., and Kenya Vehicle Manufacturers Ltd., in which it holds a 33% shareholding.
This announcement reflects the changing dynamics of East Africa’s business environment and underscores the challenges of sustaining operations in the face of mounting economic hurdles.
