FACT CHECK: What Really Happened to Companies Gachagua Said Left Kenya

Former Deputy President Rigathi Gachagua has cited the closure and withdrawal of several companies from Kenya as a result of growing economic pressure on workers and businesses.

Gachagua listed CMC Motorcycles, TTM Base, NACOMAT, Trigger Industries, De La Rue, Jumia Food, and Hilton Hotels among companies that he said had withdrawn from the Kenyan market.

However, the circumstances surrounding the companies are not uniform, as a review of their timelines and business decisions shows that some had been experiencing difficulties for years. In contrast, others discontinued specific operations without leaving Kenya entirely.

Did Gachagua Get It Right on Companies Leaving Kenya? 

Base Titanium’s exit from mining operations in Kwale was primarily linked to the depletion of the mineral deposits being extracted.

The company had operated in Kwale for more than 11 years, with mining deposits in areas including South Dune and Bumamani. However, the available ore reserves were eventually depleted, bringing the mining operation to an end.

This means the closure cannot simply be classified as a consequence of a change in government policy or the wider business environment, as the operation ended as a result of resource depletion. 

Also Read: Gachagua Reveals Main Issues Causing Disunity in the United Opposition

Nakumatt’s collapse also predates the current administration. The supermarket chain entered a prolonged financial crisis that became increasingly visible from 2017, leaving the retailer with substantial debt and growing difficulties in paying suppliers.

In addition, the company had suffered major setbacks over the years, including the 2009 Downtown fire and the 2013 Westgate attack, and was eventually liquidated in January 2020, more than two years before the new administration.

Closure Of Hilton 

The former deputy president further highlighted Hilton, claiming that the hotel completely pulled out of Kenya due to a bad business environment. 

However, the closure referred specifically to the Hilton Nairobi property in the CBD, which had operated since 1969 and closed at the end of December 2022.

The closure came amid broader changes in Nairobi’s commercial landscape, with corporate and diplomatic activity increasingly shifting towards areas such as Westlands and Upper Hill.

The cost of extensively renovating the aging property was also a factor in the decision to wind down operations at the site.

Hilton’s presence in Kenya did not end with the closure of the Nairobi CBD hotel, as the company continued to operate other properties and brands in the country, including Hilton Garden Inn and DoubleTree.

De La Rue Closure

Although Gachagua described De La Rue’s Kenyan operations as an arbitrary shutdown, a review shows that the company’s suspension was linked to both local and international developments. 

The company suspended operations in Kenya in January 2023 following a tax dispute involving the Kenya Revenue Authority.

The dispute concerned royalties paid to De La Rue’s parent company between 2013 and 2017 and resulted in a High Court case involving approximately Ksh1.1 billion.

At the same time, De La Rue was undertaking restructuring and reducing costs across its global printing operations.

The former deputy president also claimed that Jumia exited Kenya. However, the withdrawal from the food-delivery business was broader than Kenya.

The company discontinued its food-delivery operations across seven African countries on December 31, 2023.

Also Read: Atwoli Sends Message To Security Officers Who Leak Intel To Gachagua

The decision formed part of Jumia’s wider strategy to concentrate on its core e-commerce marketplace and JumiaPay after the food-delivery business struggled to achieve sustainable profitability.

Twiga Remains Active Despite Closure Claim; CMC Motors Exit Predated Recent Pressures 

According to Gachagua, Twiga had completely closed down. However, following a review, the company remains operational.

He further stated that CMC Motors’ exit from East Africa was the result of a much longer period of difficulties.

The company had reportedly struggled for more than a decade before announcing its exit and winding down of operations in the region in January 2025.

Its decline involved several factors, including corporate disagreements, strategic decisions, the loss of major vehicle franchises, changing consumer preferences, and broader economic pressures.

The end of CMC’s operations also did not mean the disappearance of the vehicle brands it previously represented, as those brands continued to be sold in the market under different franchises and distributors.

Follow our WhatsApp channel for instant news.