CMC Motors Group has announced the gradual closure of its operations in East Africa after over 40 years of service in Kenya, Uganda, and Tanzania.
In a statement released on Friday, January 17, 2024, the company explained that the decision was made after a thorough evaluation of the business in response to ongoing market challenges.
These include economic pressure, currency depreciation, and rising operational costs.
“This decision follows a thorough evalauation of the business in light of sustained market challenges, including economic pressure, currency depreciation, and rising operational cost,” the statement reads.
CMC Motors Group has been a key player in supporting East Africa’s agricultural sector by providing quality services, mechanization solutions, and consistent support to its customers.
Despite restructuring efforts and a transformation program initiated in 2023, the company stated that the current market conditions have made it unsustainable to continue operations.
The company assured that it would fully comply with local regulations and distribution agreements during the wind-down process.
Additionally, CMC Motors emphasized its commitment to supporting employees during this transition and ensuring a smooth closure of its operations.
“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.”
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