CMC Motors Exits East Africa Amid Ongoing Economic Pressures

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CMC Motors Group has announced its exit from Kenya, Uganda, and Tanzania, citing economic pressures, currency depreciation, and rising operational costs that have rendered operations unsustainable.

The firm stated it will wind down operations in compliance with local regulations and distributorship agreements, ending a 40-year presence supporting East Africa’s agricultural sector with quality service and mechanisation solutions. Despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward, CMC Motors said in a statement.

Last year, the company retrenched 169 employees following its exit from the passenger vehicle market after clearing stocks of Mazda, Ford, and Suzuki brands. Moving forward, the group plans to focus on the agricultural sector through tractor sales. CMC Motors assured its commitment to supporting employees during the transition and ensuring a smooth wind-down process. In 2022, the company sold 388 Ford pickups and SUVs, marking the end of an era in the East African market.

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CMC Motors Group Ltd is owned by CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014, the Group Limited is a leading player in the East African motor industry with exclusive distribution of New Holland tractors with an extensive range of farming implements from New Holland, Nardi and Fieldking.

CMC Motors Group Limited has seven branches countrywide and six Divisions at headquarters in Nairobi. With its two sister companies in both Uganda and Tanzania, CMC Motors Group has by far the largest distribution network in East Africa for sales, parts and services.