CMC Motors Group has announced plans to gradually wind down its operations in Kenya, Tanzania and Uganda, marking the end of an era for the company in East Africa.
In a statement, the group assured that the decision to cease operations will be executed in full compliance with local regulations and distributorship agreements.
The group explained that the move follows a comprehensive evaluation of the business, driven by persistent market challenges.
“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 group stated.
CMC Motors Group has had a significant presence in East Africa for over four decades, particularly supporting the agricultural sector.
The company has been instrumental in providing mechanisation solutions, delivering quality service and offering steadfast support to its customers.
“Over the past 40 years, CMC Motors Group has played a vital role in supporting East Africa’s agricultural sector,” the group noted.
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.
The company has assured its stakeholders, particularly its employees, that it is committed to supporting them through the transition.
CMC Motors also emphasised its dedication to ensuring a smooth and orderly wind-down process, in strict adherence to all relevant agreements and local regulations.
“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.