Global Companies That Closed Operations In Kenya In 2025

A notable number of global firms have either ceased operations or significantly scaled down their presence in Kenya during 2025, underscoring mounting challenges in the business environment.

From manufacturing to services, sectors are feeling the strain of rising operating costs, currency depreciation and shifting regulatory burdens.

Notable companies that exited:

CMC Motors Group

Once a major player in automotive distribution in Kenya, Uganda, and Tanzania, CMC Motors announced it would wind down operations in January 2025, citing “rising operational costs” and an unsustainable market position.

Lipa Later / Sky.Garden

The buy-now-pay-later fintech Lipa Later, which had acquired Sky. Garden shuttered its Kenyan operations in March 2025 amid funding shortfalls and management difficulties.

Twiga Foods, East African Cables and TransCentury Group

Twiga Foods, a key player in Kenya’s agricultural e-commerce, suspended its Nairobi operations in June 2025 following several rounds of layoffs and mounting debt pressures.

East African Cables and TransCentury Group companies, embedded in Kenya’s manufacturing and infrastructure sectors, fell into receivership in June 2025, reflecting deep distress in capital-intensive industries.

NOTE:

• Twiga Foods paused operations temporarily while it reorganises.

• TransCentury and East African Cables are undergoing insolvency-related restructuring, not a formal market exit.

Why are these exits happening?

Several interlinked factors are driving the trend:

• High operating costs – firms cite increases in fuel, energy and labour costs that erode margins.
• Currency and import pressure – the depreciation of the Kenyan shilling and high import duties hamper competitiveness.
• Regulatory and tax burdens – companies complain of unclear or shifting policy regimes, making planning difficult.
• Market dynamics – slower domestic demand and greater competition from cheaper imports affect sectors from FMCG to manufacturing.

Also Read: Airplane Accidents Reported in 2025 and Their Casualty Numbers

Impact on Jobs and Economy

The business exodus carries serious consequences for Kenya’s labour market and growth prospects.

According to the Kenya National Chamber of Commerce and Industry, more than 5,500 jobs have been lost in the three years ending January 2025 as companies withdraw.

With manufacturing and distribution hubs weakening, the ripple effects could slow economic diversification and reduce foreign investment appeal.

Also Read: Local Companies That Closed Business in Kenya This Year

Response and outlook

Government and policy-makers face mounting pressure to stabilise the business environment. For such kind of stability to be experienced, Kenya must:

• Reform regulatory frameworks and ensure policy predictability
• Address cost drivers such as energy and transport
• Strengthen incentives for local manufacturing and investment
• Improve the currency and import regime to enhance competitiveness

Without decisive action, the trend of global companies exiting or downsizing in Kenya may accelerate, jeopardising employment and investment momentum.

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