CMC Motors Group has declared its intention to cease operations in Kenya, Tanzania, and Uganda, marking the conclusion of over four decades of business activities in the region.
In an official statement, the company, which is a subsidiary of CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014, highlighted that this decision aligns with local regulations and existing distributorship agreements.
The company explained that this decision was reached after a thorough assessment of its business, taking into account persistent market challenges such as economic pressures, currency devaluation, and increasing operational expenses.
“Throughout the last 40 years, CMC Motors Group has played a vital role in bolstering East Africa’s agricultural sector by delivering high-quality service and mechanization solutions,” the statement noted.
Despite efforts to restructure and a transformation initiative initiated in 2023, CMC acknowledged that the prevailing market conditions have not provided a feasible avenue for growth.
The company reaffirmed its dedication to assisting employees during this transition, ensuring that the wind-down process is conducted smoothly and in compliance with all applicable agreements and regulations.
Other subsidiaries under CMC Holdings Ltd include Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd, and a 33% stake in Kenya Vehicle Manufacturers Ltd.
