JILK Construction seeks court order to secure US$23M from Diageo ahead of planned EABL stake sale
JILK asks High Court to ring-fence funds from Diageo amid fears its Kenya exit could frustrate pending claims.
KENYA – JILK Construction Company Ltd has moved to Kenya’s High Court seeking urgent orders to secure Kes 3 billion (US$23 million) from multinational brewer Diageo Plc and its Kenyan subsidiaries, citing concerns that a planned share sale could undermine the enforcement of a pending arbitral award and related claims.
The Nairobi-based construction firm has filed a Notice of Motion against Diageo Plc, Kenya Breweries Ltd (KBL), East African Breweries Ltd (EABL), and the Competition Authority of Kenya (CAK).
According to a report by tv47, JILK is asking the court to compel Diageo, KBL, and EABL to reserve and deposit Kes 3 billion in court pending the hearing and determination of the case.
JILK is also urging the court to fast-track the proceedings and deliver judgment by April 30, 2026, ahead of anticipated regulatory approvals for the proposed sale of Diageo’s stake in EABL to Japan’s Asahi Group Holdings, which are expected between May and June 2026.
Through its lawyer, Kibe Mungai, the company argues that the matter is extremely urgent, warning that Diageo’s anticipated exit from Kenya could compromise its ability to recover amounts claimed in a long-running dispute linked to construction works at the Kisumu brewery plant.
According to the application, JILK entered into three construction contracts with Kenya Breweries Ltd between October 2017 and March 2018 for civil works related to the refurbishment of the Kisumu brewery under Project Nafasi.
The firm says the contracts were executed and the works handed over, but disputes later emerged over payments and project execution.
While the contracts were formally between JILK and KBL, the applicant claims Diageo Plc exercised full control over the project, including supervision, procurement, and financial decisions, effectively acting as the true client.
JILK says the unresolved disputes led it to initiate arbitration proceedings, in which it is claiming KSh2.45 billion (US$18.8 million), plus interest and costs. Final submissions were filed in August and November 2024, paving the way for an arbitral award.
However, the firm alleges that publication of the award was blocked after KBL filed a constitutional petition in December 2024, resulting in conservatory orders stopping the arbitrator from issuing the decision. That petition remains pending.
Beyond the commercial dispute, JILK’s application raises allegations of sexual harassment and abuse of its female employees by foreign consultants and officials allegedly linked to Diageo during the project.
The company claims complaints were ignored internally and that efforts were later made to shield those accused. Two female employees reported alleged sexual harassment to the police in January 2020, prompting investigations by the Directorate of Criminal Investigations.
JILK further alleges that the respondents fabricated a whistleblower report to justify court action that stalled the arbitration, describing this as an abuse of court process and obstruction of justice.
Separately, Kenyan beer distributor Bia Tosha has also moved to court seeking to block the proposed divestment, citing competition concerns in the beer distribution market.
Meanwhile, EABL recently reported a 37.68% increase in net earnings to Kes 11.16 billion (US$85.8 million) for the half-year ended December 31, 2025.
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