CMC Motors Group has announced its decision to exit Kenya, Uganda, and Tanzania, citing unsustainable economic pressures, currency depreciation, and rising operational costs.
This move marks the end of the company’s four-decade legacy in East Africa, where it played a pivotal role in advancing agricultural mechanization and delivering quality service.
In a statement, the company expressed its regret over the decision, despite efforts to restructure and adapt to challenging market conditions.
“Despite implementing a transformation program in 2023, the market has not provided a sustainable path forward,” the company said.
A Gradual Exit in Compliance with Local Regulations
CMC Motors will wind down its operations in compliance with local regulations and distributorship agreements.
The exit comes a year after the company retrenched 169 employees and withdrew from the passenger vehicle market, having sold off its inventory of Mazda, Ford, and Suzuki vehicles.
Looking ahead, the group plans to concentrate on the agricultural sector, focusing on tractor sales and other related services.
Supporting Employees Through the Transition
As it exits the region, CMC Motors has assured its commitment to supporting employees during the transition period, pledging a smooth and respectful wind-down process.
A Legacy of Innovation and Service
The company’s departure is a significant shift for the East African automotive and agricultural sectors. In 2022, CMC Motors sold 388 Ford pickups and SUVs, marking a symbolic conclusion to its contributions in the region’s automotive market.
While the decision to exit may mark the end of an era, CMC Motors’ legacy in East Africa’s agricultural development remains an enduring testament to its impact over the past 40 years.