CMC Motors Group has announced its decision to gradually wind down operations in Kenya, Tanzania, and Uganda in full 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. 

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 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.

In April 2023, the company laid off 169 employees and exited the passenger vehicle market.

The declining sales of various models of vehicles by CMC Motors over the years has seen rivals seize the dealership rights. 

In March 2024, CMC lost its dealership of UD Trucks to Isuzu East Africa. In 2022, CMC Motors lost the Renault truck dealership to Caetano Kenya. 

This followed another string of losses in its dealership of Jaguar Land Rover to Inchcape and Suzuki cars franchise in 2018 to Toyota Kenya.

Other subsidiaries under CMC Holdings Ltd include Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd, and a 33 percent shareholding in Kenya Vehicle Manufacturers Ltd.