• Tuesday, 21 January 2025
CMC Motors exits Kenya, Uganda, Tanzania amid economic strains

CMC Motors exits Kenya, Uganda, Tanzania amid economic strains

CMC Motors Group has announced its exit from Kenya, Uganda, and Tanzania, citing economic pressures, currency depreciation, and rising operational costs that have rendered operations unsustainable.

The firm stated it will wind down operations in compliance with local regulations and distributorship agreements, ending a 40-year presence supporting East Africa’s agricultural sector with quality service and mechanization solutions.

“Despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward,” CMC Motors said in a statement.

Last year, the company retrenched 169 employees following its exit from the passenger vehicle market after clearing stocks of Mazda, Ford, and Suzuki brands. Moving forward, the group plans to focus on the agricultural sector through tractor sales.

CMC Motors assured its commitment to supporting employees during the transition and ensuring a smooth wind-down process.

In 2022, the company sold 388 Ford pickups and SUVs, marking the end of an era in the East African market.

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