CMC Motors Group Shuts Down Its Operations In Kenya, Uganda And Tanzania

Nairobi, January 17, 2025 – CMC Motors Group, a long-standing player in the East African automotive and agricultural machinery sector, has declared its decision to close down its operations in Kenya, Uganda, and Tanzania. This move concludes four decades of service in the region, prompted by persistent economic challenges, currency depreciation, and increased operational costs.

The company, which has been pivotal in mechanizing agriculture across the three countries, made the announcement after a strategic review of its business operations. Despite attempts at restructuring and launching a transformation initiative in 2023, the economic environment has not shown signs of improvement sufficient to sustain the business model.

“After careful consideration, we have decided to gradually wind down our operations in East Africa,” stated a CMC Motors Group spokesperson. “This decision was not made lightly, but due to the overwhelming market conditions that have not allowed us to continue our operations profitably.”

The closure will affect numerous employees, prompting CMC Motors to commit to supporting its workforce during this transitional phase. The company assures that it will follow local laws and its distributorship agreements to ensure a smooth exit.

“The company is committed to supporting its employees during this transition and will ensure a smooth and orderly wind-down in adherence to all relevant agreements and regulations,” the group said.

The withdrawal of CMC Motors from these markets raises questions about the future of agricultural mechanization in East Africa. Local farmers, who have benefited from the company’s products and services, now face uncertainty about where they will source their equipment and maintenance services.

Industry experts are calling for government intervention and new players to step in to fill the void. “This situation could be an opportunity for local manufacturers to grow or for foreign companies to enter the market, but the transition needs to be managed carefully to avoid disruption in agricultural productivity,” noted economist Dr. Lillian Ng’ethe.

The company has been instrumental in providing mechanisation solutions, delivering quality service and offering steadfast support to its customers.

Despite ongoing restructuring efforts and a transformation program launched in 2023, CMC Motors Group acknowledged that market conditions have made it difficult to maintain a sustainable path forward.

“However, despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward,” the statement explained.