East Africa has long been known as a hub for business growth, with countries like Kenya, Uganda, and Tanzania attracting big-name corporations hoping to have some of that African market.
In recent years, however, the East African market has seen some notable losses as long-standing companies exit out. Economic challenges, shifting customer behavior, regulatory hurdles, or stiff competition, we cover some of the reasons companies are leaving East Africa in why multinational corporations struggle to thrive in Africa’s complex markets.
Today, we are listing some of the notable companies that we have lost, such as Uganda and East Africa at large.
(1). CMC Motors Group – Dying out After Decades
CMC Motors, one of East Africa’s most recognisable automobile dealerships shut down operations in Kenya, Uganda, and Tanzania this early 2025. The company, a subsidiary of the Al-Futtaim Group left on grounds of operational costs, economic instabilities in the region, and currency fluctuations that made it hard to continue business, despite efforts to restructure and stay afloat.
The market dynamics proved too challenging, forcing the brand to exit the region it had served for over 40 years. CMC Motors Pulls Out of East Africa – Is This the End for Farmers and Car Buyers?
(2). Mobius Motors – The Dream of an African SUV Ends.
Morbius Motors, a Kenya-based automaker entered the market with the goal to produce affordable and rugged vehicles suited for African roads. However, financial struggles and rising taxes in Kenya made it impossible to sustain operations.
In August 2024, the company called it quits, leaving many wondering about the future of Africa’s automobile industry. Kenya’s Mobius, maker of rugged cars for African roads, calls it a day.
(3). Africell Uganda – Telecom that couldn’t keep up.
Uganda’s telecom sector has always been highly competitive with MTN and Airtel monopolizing the space. While many other companies have their shares, the likes of Lyca Mobile, and Manda Mobile…in 2021, Africell Uganda found itself struggling to keep pace with the MTN and Airtel giants, thus, after seven years in the market Africell pulled the plug on grounds of limited long-term growth opportunities. Africell confirms exit from Uganda.
(4). Game Stores – the retail game that didn’t last.
In October 2022, Massmart Holding, the owner of Game Stores announced its departure from Uganda. The retail chain has struggled with low profitability and failed to find a local buyer to take over operations which prompted total closure.
This closure of Game Stores followed a long-standing trend of supermarket chains struggling to maintain a strong foothold in the East African market due to unfavorable economic fluctuations and changing shopping habits.
(5). Shoprite – another Supermarket Giant that called it quits.
Shoprite, Africa’s largest supermarket retailer made its decision to exit Kenya in 2021 after just two years of operations. The South African retail giant faced underperformance and found it difficult to compete in Kenya’s price-sensitive market as more customers turned to local and online shopping options. Shoprite decided it was best to cut its losses and focus on its home market.
(6). Nakumatt – the rise and fall of an iconic brand.
For years, Nakumatt was the leading supermarket chain in East Africa, but mismanagement and excessive debt led to its downfall. By 2017, the company had collapsed and shut down stores in Kenya, Uganda, Tanzania and Rwanda. The once-thriving retailer became a case study in poor financial management, showing how even dominant brands can fail without proper strategy and planning.
(7). Uchumi Supermarkets – another retailer bows out.
Following in Nakumatt’s footsteps, Uchumi Supermarkets also faced financial woes, struggling with liquidity and decided to exit Uganda and Tanzania in 2015. Eventually, having failed to restructure, Uchumi couldn’t keep up with rising operational costs and competition and was forced to retreat back to Kenya.
Why Are Companies Leaving East Africa?
While each company had its reasons and factors for exiting the market, some common factors include:
Economic Uncertainty, in that currency depreciation and inflation, make it expensive for businesses to operate profitably.
High Competition especially for companies that fail to adapt to local consumer preferences. That said, facing stiff competition from both international and homegrown brands makes it quite a challenge for new establishments.
Regulatory and Tax Challenges also make business hard. Frequent policy changes and high taxation in some countries made it hard for foreign businesses to pick up.
Changing Consumer Behavior. The rise of e-commerce and local alternatives has changed the retail and service industries.
That said, while these exits may seem discouraging, they have also created opportunities for local entrepreneurs and emerging businesses as the departure of big brands leaves gaps that smaller, more agile companies can fill.
In addition, businesses that take time to understand market dynamics and adapt to regional economic realities stand a better chance of long-term success.
East Africa remains a promising market, but it’s not without its challenges. Companies looking to succeed must be willing to adapt, innovate, and build strong relationships with local consumers because here, having a big brand name isn’t the only factor for success.
