CMC Motors Group has announced plans to gradually cease operations in Kenya, Tanzania, and Uganda, citing persistent market challenges.

According to a statement issued by the company, the decision comes after a comprehensive evaluation of the business landscape, marked by economic pressures, currency depreciation, and escalating operational costs.

"The increasing challenges in the business environment have made it difficult to continue operating in the region. Despite our best efforts, these factors have left us with no viable path forward," the statement read.

The company, a prominent player in East Africa’s agricultural sector for over 40 years, has pledged to ensure compliance with local regulations and distributorship agreements during the wind-down process.

In the statement released on Friday, CMC Motors Group reaffirmed its commitment to employee support during the transition.

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"Supporting employees during this transition and ensuring a smooth and orderly wind-down in adherence to all relevant agreements and regulations," CMC said.

Despite restructuring initiatives and a transformation programme launched in 2023, the company stated that prevailing market conditions failed to offer a viable path for sustainability.

Acquired by the Al-Futtaim Group in 2014, CMC Motors Group Ltd operates under CMC Holdings Ltd, which also oversees Cooper Motor Corporation (Uganda) Ltd, Hughes Motors (Tanzania) Ltd, and Kenya Vehicle Manufacturers Ltd.

CMC’s departure marks the end of an era, as the firm has been instrumental in providing mechanisation solutions, quality service, and unwavering support to agricultural stakeholders across East Africa.

However, it now faces the reality of economic hurdles that have proven insurmountable.

The company’s exit signals broader concerns for the region's business environment, raising questions about the future viability of similar enterprises amidst ongoing economic challenges.