Home Business Mass lay-offs as CMC Motors Group exits Kenya, Tanzania, Uganda

Mass lay-offs as CMC Motors Group exits Kenya, Tanzania, Uganda

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[CMC Holdings Ltd Logo. The company has announced its exit in Kenya, Tanzania and Uganda. Photo/courtesy/January, 17, 25].

CMC Motors Group has announced a cease in operations in Kenya, Tanzania and Uganda, putting to an end its four decades of operations in the region.

In a statement on Friday, the company, owned by CMC Holdings Ltd and acquired by the Al-Futtaim Group in 2014, disclosed that the step is as per the local regulations and agreements.

According to CMC, comprehensive evaluation of the business and a consideration of the ongoing market challenges among them economic pressures, currency depreciation and rising operational costs triggered the move.

“Over the past 40 years, CMC Motors Group has supported East Africa’s agricultural sector by providing quality service and mechanisation solutions,” the statement read in part.

Despite restructuring efforts and a transformation program launched in 2023, CMC noted that market conditions have not offered a viable path for growth, thus posing some serious operation setbacks.

The company expressed its commitment to supporting employees through the transition, ensuring a smooth and orderly wind-down in accordance with all relevant agreements and regulations.

Other CMC affiliates in the East Africa region include Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd and a 33% shareholding in Kenya Vehicle Manufacturers Ltd.

 

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