CMC Motors Group Limited announced on Saturday, January 18 that they will gradually shut down their operations in Kenya, Tanzania and Uganda 11 years after it was acquired by the Dubai-based Al Futaim Auto & Machinery.
The Motor group cited tough operating environment, as the reason for its end of more than a decade in Eastern Africa.
The Al Futaim brothers acquired the company in 2014 at 7.5 billion, and has exited the passenger car business, to deal with agricultural equipment like the famous New Holland tractors, a deal that the NSE advertised in the local dailies as a merger or acquisition.
When the CMC motors were handing over the operations to Al Futaim, the agreement had a suspicious tag, “The acquirer” . They had a profound interest in controlling CMC motor’s group’s outstanding shares, and wanted to take 100% control over the assets even though the CMC were proposing a 51% share, which they blatantly rejected.
Reportedly, the MAJID BBROTHERS (Al Futaim Motors) had their financial scouts do a thorough investigation of CMC assets before coming to start the negotiations.
CMC had vast lands where its operations took place, its headquarters, regional branches, 40 acres that stretches from Bunyala road and crosses all the way to Lusaka road, 15 acres of land in Mombasa CBD, 50 acres on the west mainland which stretches to other towns including: Kisumu, Eldoret, Nakuru, Kitale, Meru and Nanyuki.
This also gave them control over the lands in Uganda & Tanzania, a direct gateway to the Central African Countries, including the expansive rich minerals in DRC.
The Al futaim flatly refused the 51% share and proposed a 100% buyout or nothing. They therefore acquired the CMC motors at 100% buyout as a subsidiary to the MAJID brothers conglomerate.
On April 24, 2023 the Al Futaim wrote redundancy letters and laid off over 169 workers, they reported that they were clearing the remaining stocks of vehicles including Ford, Mazda and Suzuki franchises, which were transitioning to new dealers.
Some of the famous billionaires bought out of CMC including Paul Ndung’u, Joel Kibe and the late Jeremiah Kiereini. Allegedly, some of them had huge sums of money deposited into their account from the offshores account, illicit transactions that were later exposed by a forensic audit.
Following the closure, Kenyans expressed mixed reactions:
“Alafu utaskia Itungati wakisema it’s because of Ruto.” Paul Mwangi commented
“They are closing their operations across East Africa.” Saul Badman answered people insinuating that Al Futaim’s decision to withdraw its operations could have been inspired by the Kenya Kwanza Government.
Sadly, the Kenyan Government and NSE ( Nairobi Securities Exchange) of the time contributed in ruining the lives of more than 2000 employees and over 20,000 indirect dependents into the gutter by just a one-day deal.
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