NAIROBI, Kenya- Another major player is bowing out. CMC Motors Group has officially announced its exit from Kenya, Uganda, and Tanzania, marking the end of a 40-year presence in East Africa’s automotive and agricultural sectors.
Harsh economic conditions, a depreciating currency, and soaring operational costs have made business unsustainable.
If you’ve been following the economic climate in East Africa, this move may not come as a shock.
Rising inflation, supply chain disruptions, and fluctuating currency values have created a tough environment for businesses, and CMC Motors isn’t immune.
The company tried to stay afloat with a restructuring plan in 2023, but in the end, the numbers didn’t add up.
“Despite our transformation efforts, the market conditions have not provided a sustainable path forward,” CMC Motors stated in its official announcement.
This decision follows the company’s earlier exit from the passenger vehicle market in 2023, where it phased out brands like Mazda, Ford, and Suzuki after selling off remaining stock.
Now, CMC Motors is shifting its focus solely to the agriculture sector, particularly tractor sales.
The sudden exit raises questions about job security and customer support.
Agricultural industry machinery dealer CMC Group announces its plan to exit from Kenya, Uganda and Tanzania citing “sustained market challenges, economic pressures, currency depreciation and rising operational costs”
CMC Motors has assured employees that it will support them through the transition, though the specifics remain unclear.
In 2023, the company laid off 169 employees in an effort to streamline operations. Now, with a complete shutdown, even more jobs are at stake.
For customers, the company has promised a smooth wind-down process, complying with local regulations and distributor agreements to ensure minimal disruption.
However, long-term support for existing Ford, Mazda, and Suzuki owners in East Africa remains uncertain.
CMC Motors played a pivotal role in East Africa’s automotive and agricultural markets, supplying vehicles and machinery for decades. In 2022 alone, it sold 388 Ford pickups and SUVs, showing its strong market presence.
But as global and regional economies shift, even long-established brands are feeling the pressure.
