CMC Motors Group has decided to exit the Kenyan, Ugandan, and Tanzanian markets due to significant economic headwinds.
The company cited economic pressures, currency depreciation, and rising operational costs as key factors in this difficult decision.
“CMC Motors Group has decided to gradually wind down operations in full compliance with local regulations and distributorship agreements,” said the company in a statement.
“This decision follows a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation, and rising operational costs,” the statement read in part.
“Over the past 40 years, CMC Motors Group has played a vital role in supporting East Africa’s agricultural sector through the delivery of quality service, mechanization solutions, and steadfast support to its customers.
“However, despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward,” the statement further read.
This move will impact hundreds of employees and marks the end of a 40-year era for CMC Motors, a prominent player in East Africa’s automotive and agricultural sectors.
“The company is committed to ensuring a smooth and orderly wind-down in compliance with all relevant agreements and regulations,” CMC stated.
CMC Motors Group Limited, part of the Al-Futtaim Group product portfolio, includes the exclusive distribution of New Holland Tractors, FieldKing Farm Implements, Nardi Farm Implements, and Hero motorbikes from the world’s largest motorcycle manufacturer, Hero MotorCorp.
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