Cmc Motors Group Bids Farewell To East Africa: A Legacy Of Over 40 Years Ends In Kenya, Uganda, And Tanzania
Africa
Business
The Coopers Motor Corporation also known as CMC Motors Group began its operations in the East Africa Region in the early 1980s. It has been a key industry player in the automotive industry and is among the top importers and an assembly company of vehicles in Kenya. It has been a leader in providing agricultural solutions in Kenya. The company has been offering products such as Field King, Nandi farm implements, Hero Motorbikes, and New Holland Tractors. This has made CMC Motors Group, the largest distribution supplier of automobiles in the East Africa Region. The company has had 7 branches and 6 divisions in Kenya. It also has sister companies in Uganda and Tanzania. However, as of 17th January 2025, the company announced its decision to cease operations in Kenya, Uganda, and Tanzania. The company has cited its reasons for ceasing operations due to the declining economic environment in Kenya, Uganda, and Tanzania. In 2023, the company underwent restructuring to smoothen its business operations and increase its profits. The economic pressure in the region prompted the company to bow out of business in the region. CMC Motor Group has been steadfast in providing mechanization solutions and better services to its clients, and its closure of business in the East Africa region will affect a large pool of farmers that rely on it for agricultural purposes. The market conditions have hampered its ability to sustain its operations in the future in the region. Its closure will result in the loss of jobs for the East African people who rely on it to support their livelihoods. The company is positive in maintaining a smooth transition by supporting the employees through the transition period and adhering to the wound-up and legal processes of Kenya, Uganda, and Tanzania. The exit of CMC Motors group highlights the continuing challenges experienced by businesses in the East African Region as they fail to meet their goals of service delivery and increased earnings. The company joins a list of increased companies that have ceased operations in East Africa particularly Kenya. A classic example of companies that have ceased operations in Kenya is De La Rue in 2023 due to a decline by the Central Bank of Kenya (CBK) in printing money, Africa Oil (2023) exited the Turkana oil project, Builders (2023) exited the Kenyan market due to increased losses, Nestle in 2023, Neumann Kaffee Gruppe (NKG) mills Kenya in 2024 citing changes in regulatory policies in the coffee sector, Game Stores in 2022 also closed down operations in the Kenyan market due to continued financial losses and failure to get a buyer. The banking sector has been affected in Uganda as a large percentage have closed operations. Greenland Bank, Teefe Bank, International Credit Bank, Cooperative Bank, National Bank of Commerce, Global Trust Bank, Crane Bank Limited, and EFC Uganda Limited have ceased operations in Uganda. The continued closure of big corporations in the region depicts a poor business environment due to regulatory hurdles, corruption, competition from local brands, high operational costs, and increased taxation. It points to the need for governments in the region to focus on win-win policies to safeguard the livelihoods of millions employed by such companies and promote more investors to the region leading to increased GDP of the East Africa Region.
26 DAYS AGO
