CMC Motors Group, one of East Africa’s top vehicle distributors for over 60 years, is closing its doors in Kenya, Uganda, and Tanzania.
The company announced its shutdown on January 17 citing mounting operational costs, currency depreciation, and the loss of critical vehicle franchises as factors.
CMC entered East Africa—starting with Kenya—in 1948, and went public in 1956, showing a strong market reception. It followed that by expanding into Uganda in 1960 and Tanzania later in 2007.
The mobility company built a reputation by distributing global automotive giants like Ford, Volkswagen, Jaguar, and Land Rover, becoming a household name in East Africa. For years, it was the go-to provider of reliable vehicles and equipment across the region. But over the past decade, the company faced growing challenges.
In 2014, Dubai-based Al-Futtaim Group acquired CMC in an $86 million deal, delisting it from the Nairobi Securities Exchange (NSE). Despite restructuring attempts, the company could not escape setbacks, notably the loss of car franchises. The most notable blow came in 2023, when CMC lost the Ford dealership to competitor Salvador Caetano, following the earlier exit of Jaguar, Land Rover, and Volkswagen. Shortly after, it laid off 169 employees to reduce overhead costs.
The layoffs didn’t slow down the company’s problems as vehicle import costs also soared and the regional economy slowed further crippling CMC’s numbers. The company’s shutdown will result in at least 200 job losses across East Africa.
After Mobius Motors, CMC becomes the second recognisable mobility brand to exit East Africa in the last six months. While Mobius remains in talks for an acquisition, the future for CMC looks set—down and out.
