Rising operating costs push CMC Motors out of Kenya, EA region

CMC Motors Group has announced it is gradually winding down operations in Kenya, Uganda and Tanzania in compliance with local regulations and distributorship agreements.
“This decision follows a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation and rising operational costs,” it said in a statement.
The company, which has been in existence for over 40 years, says it has been a leader in the region’s agricultural sector providing quality service, mechanised solutions, and steadfast support to its customers.
However, it adds that despite restructuring efforts and a transformation programme initiated in 2023, the market conditions have not provided a sustained path forward.
“The company is committed to supporting its employees during this transition and will ensure a smooth and orderly wind-down in adherence to relevant agreements and regulations,” the statement concluded.
In 2023, it declared 169 of its workers in Kenya redundant after leading car brands, Mazda, Ford and Suzuki, terminated their distribution deals with the company.
It is the latest in a chain of companies that have left Kenya citing harsh operating conditions, especially as a result of heavy taxation.
CMC Motors Group is owned by CMC Holdings Ltd and was acquired by the Al-Futtaim Group in 2014. Other trading subsidiaries owned by CMC Holdings Ltd include Cooper Motor Corporation (Uganda) Ltd and Hughes Motors (Tanzania) Ltd.