Lay’s retirement takes effect on April 30 but he has proceeded on leave in the meantime.
“CMC Holdings and William Lay have agreed by mutual consent that Lay retires from his position as the Group Managing Director with effect from April 30 2013,” the chairman of the CMC board Joel Kibe disclosed.
Meanwhile the board has appointed Mary Ngige to take the position in an acting capacity until further notice.
Lay joined CMC holdings in June 2011 from General Motors East Africa with high expectations of taking the firm to new heights.
He however exits at a time when the = motor dealer is facing boardroom and shareholder wars that have seen the ouster of nearly all of its directors in a span of 18 months.
The tussle started after one of the largest shareholders Peter Muthoka was thrown out as CMC board chairman in March 2012 after he was allegedly involved in illegal dealings that saw the company lose close to Sh1.5 billion in five years.
The CEO has been at the centre stage of the disagreements after he released a statement to the media on September 14 last year, revealing the results of an audit that showed how Muthoka’s Andy Forwarders had overbilled CMC by between Sh300 million and Sh500 million every year for logistics service rendered.
The firm which has seen Muthoka’s exit and that of other directors including Charles Njonjo, Jeremiah Kiereini, Sobakchand Shah, Richard Kemoli, Andrew Hamilton and Martin Forster was suspended from trading at the Nairobi Securities Exchange since September last year.