CMC Motors Group has announced it will end operations in Kenya, Tanzania, and Uganda due to economic pressures, currency depreciation, and high operational costs.
Over 500 people are risking losing their jobs in Kenya.
CMC Motors Group has indeed announced its intention to cease operations in Kenya, Tanzania, and Uganda.
The region has been dealing with various economic issues, affecting the sustainability of businesses like CMC Motors.
The weakening of local currencies against major international ones has made importing vehicles and parts more expensive, impacting profitability.
Increased costs of doing business, from labour to logistics, have compounded the financial strain on the company.
This closure marks the end of over 40 years of operations for CMC Motors in these countries, which had been a significant player in the automotive and agricultural sector, particularly through the distribution of brands like Ford, Mazda, and New Holland tractors.
The company’s exit will have implications for the automotive market dynamics in East Africa, potentially leading to job losses and affecting the supply chain of vehicles and agricultural equipment in the region.
The decision follows a restructuring program initiated in 2023, but according to CMC Motors, the market conditions did not improve sufficiently to allow for a sustainable path forward.
This news has been met with various reactions on social media where discussions range from lamenting the loss of jobs to analyzing the broader impact on the economy and the automotive sector in East Africa.
