CMC Motors Group has announced its decision to wind down operations in Kenya, Tanzania, and Uganda, ending 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, emphasized that the move complies with local regulations and distributorship agreements.
According to CMC, the decision followed a comprehensive evaluation of the business, considering ongoing market challenges such as economic pressures, currency depreciation, and rising operational costs.
CMC Motors Group has announced its decision to wind down operations in Kenya, Tanzania, and Uganda, ending 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, emphasized that the move complies with local regulations and distributorship agreements.
According to CMC, the decision followed a comprehensive evaluation of the business, considering ongoing market challenges such as economic pressures, currency depreciation, and rising operational costs.
“Over the past 40 years, CMC Motors Group has been instrumental in supporting East Africa’s agricultural sector by providing quality service and mechanization solutions,” the statement indicated.
Despite restructuring efforts and a transformation program launched in 2023, CMC noted that market conditions have not offered a viable path for growth.
The company expressed its commitment to supporting employees through this transition, ensuring a smooth and orderly wind-down in accordance with all relevant agreements and regulations.