In a statement released on Friday, January 17, 2025, the management attributed the move to sustained market challenges, including economic pressures, currency depreciation and rising operational costs.
'Over the past 40 years, CMC Motors Group has played a vital role in supporting East Africa's agricultural sector through the delivery of quality service, mechanization solutions, and steadfast support to its customers. However, despite restructuring efforts and a transformation program initiated in 2023, the market conditions have not provided a sustainable path forward,' the statement reads in part.
According to the company, the gradual winding down of operations in the three countries will be done in 'full compliance with local regulations and distributorship agreements.'
'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 management added.
CMC Motors Group Ltd, owned by CMC Holdings Ltd, was acquired in 2014 by the Al-Futtaim Group, a multinational conglomerate based in the United Arab Emirates (UAE). Other trading subsidiaries owned by CMC Holdings Ltd include Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd, and Kenya Vehicle Manufacturers Ltd (33% Shareholding).
The company deals in a comprehensive range of automotive and related products and services, making it a key player in the East African market. This includes the sales and distribution of a variety of vehicles, from passenger cars to commercial vehicles such as UD Trucks, Eicher Trucks, and MAN Trucks.
They also cater to the construction and agricultural sectors, distributing Bobcat and Case construction equipment, and New Holland tractors with various farming implements. Beyond sales, CMC Motors Group provides extensive after-sales services through its network of showrooms and service centers, offering maintenance, repairs, and spare parts.
Additionally, they have a specialized engineering division, CMC Engineering, which designs and builds custom truck bodies, trailers, and other fabrications, along with an accident repair workshop equipped for dent repair and re-spraying.
In April 2023, CMC Motors Group declared 169 of its workers in Kenya redundant after three vehicle brands namely Mazda, Ford and Suzuki terminated their distribution deals with the company.
Wycliffe Nyamasege
