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A Kenyan High Court on Thursday dismissed a legal challenge aimed at blocking Diageo’s $2.3 billion sale of its majority stake in East African Breweries Limited (EABL) to Japan’s Asahi Holdings.
The petition, filed by local distributor Bia Tosha, had sought to halt the transaction due to ongoing litigation regarding distribution rights.
However, Judge Bahati Mwamuye lifted all orders impeding the sale, clearing the path for one of the largest corporate deals in Kenya’s history.
The divestment is a core component of a turnaround strategy led by Diageo’s new CEO, Dave Lewis, as the London-listed spirits giant seeks to reduce debt and navigate a period of stagnant global sales.
Diageo wants to refocus its portfolio by selling its 65% stake in the regional brewing powerhouse. This is because consumer tastes are changing, and the economy is uncertain.
EABL has welcomed the court’s decision and expressed its intent to resolve the underlying distribution dispute through the proper legal channels.
For the Japanese brewer Asahi, the acquisition represents a strategic entry into the African market, providing access to a robust portfolio of established brands and advanced production facilities.
The deal is also a significant win for the Kenyan government, which has been keen to secure major foreign direct investment to bolster the industrial sector and stimulate job creation.
Both companies now expect to finalise the transaction during the second half of 2026.
