CMC Motors exits Uganda, Kenya

CMC Motors has operated across East Africa for over 40 years. Photo / File
What you need to know:
- CMC says it will gradually exit its East African operations in Uganda, Kenya, and Tanzania
Regional motor vehicle dealer, CMC Motors Group has said it will gradually wind down operations in Uganda, Kenya, and Tanzania due to sustained market challenges.
In a statement released Friday, CMC noted that the decision had come after a “thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation, and rising operational costs”.
“… despite restructuring efforts and a transformation programme initiated in 2023, the market conditions have not provided a sustainable path forward,” the statement reads in part, noting that CMC would exit the three markets in full compliance with local regulations and distributorship agreements.
The decision comes after CMC, in August 2023, exited exclusive distribution of Ford, Mazda, and Suzuki, creating a mad rush for some of the brands it had been distributing.
In a notice then, CMC indicated it was exiting the sale of personal vehicles due to a major shift in business strategy to refocus the company’s growth efforts towards agriculture mechanisation solutions.
The shift, Mr Sakib Eltaff, the CMC Group managing director, said then had been informed by the need to support government to sustain the growth momentum in the transformation of agriculture, noting that focus would now be put on exclusive distribution of New Holland, a tractor series with an extensive range of farming implements.
“Agriculture has been going from strength to strength in the past few years and the demand for agriculture solutions is now stronger than ever,” he said then, noting that the shift would focus on playing a role in ensuring that Uganda continues to make progress in the quest for food security.
Some of its former dealership brands such as Suzuki and Ford were taken over by CFAO, formerly Toyota and Motorcare, respectively.
CMC Uganda has been contacted for a comment.
For more than 40 years, CMC Motors has been a key player in the distribution of agricultural solutions across East Africa, supporting mechanisation of one of the sectors that have remained agrarian despite several internvetions from both the private sector and government.
In the statement, CMC said it was 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”.