CMC exit: Is Kenya turning into a graveyard for industries?

The recent announcement that Dubai-backed Al-Futtaim Group will be shutting down CMC Motors Group, the region’s automotive and agricultural sectors powerhouse for over four decades, has rekindled concerns about the state of Kenya’s business environment. 

This decision, linked by the former giant auto dealer to “unsustainable” market conditions, adds CMC Motors to a growing list of companies that have either exited the Kenyan market entirely or significantly scaled back their operations. Established in 1985, CMC Motors played a pivotal role in mechanising Kenyan agriculture and distributing renowned car brands. 

However, the company has faced mounting challenges in recent years, including the loss of key vehicle dealerships like Ford, Mazda, and Suzuki, despite its expected boost from the Al-Futtaim acquisition.