Kenyan distributor seeks Court block on Diageo’s US$2.3B EABL sale to Asahi
Bia Tosha asks Kenya’s High Court to halt Diageo’s EABL sale pending resolution of a competition dispute.
KENYA – Bia Tosha, a Kenyan beer distributor, has filed a case at Kenya’s High Court seeking to block Diageo’s planned US$2.3 billion sale of its local subsidiary, East African Breweries Limited (EABL), to Japan’s Asahi Holdings over unresolved litigation.
Diageo, the world’s largest spirits producer, announced last month that it had agreed to sell its 65% stake in EABL to Asahi as part of a broader strategy to divest assets and reduce debt.
The group has cited the impact of US tariffs, sales declines and changing consumer patterns, alongside a wider pullback from parts of Africa.
Bia Tosha has asked the court to suspend the transaction until its competition dispute against Diageo, EABL and its Kenyan subsidiary, Kenya Breweries Limited (KBL), is fully determined and settled. The case relates to alleged competition issues in the beer distribution market.
Kenya’s High Court has certified the matter as urgent and scheduled a hearing for Friday. Kenneth Kiplagat, Bia Tosha’s lawyer, said the court would issue directions at the hearing.
“The court has certified the case as urgent and set a hearing date for Friday, when it will give directions,” Kiplagat told Reuters.
EABL has rejected any connection between the legal challenge and the proposed sale. In a statement, the brewer said the case “has no factual or legal links to the transaction.”
It added: “Regardless of the change of majority shareholder, EABL and KBL remain independent, capable entities fully able to conduct their business and defend any litigation.”
If completed, the transaction would value EABL at US$4.8bn and mark Diageo’s full exit from direct ownership of African beer operations. Diageo inherited its African beer assets following the 1997 merger of Grand Metropolitan and Guinness.
Despite the divestment, Diageo has entered into licensing agreements with EABL to ensure the continued production and distribution of Guinness, selected local spirits and ready-to-drink brands. The arrangements also cover distribution of Diageo’s international spirits portfolio across the region.
For the financial year ended June 30, 2025, EABL reported net sales of US$996m, EBITDA of US$258m and net profit of US$94m.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
