Kenya Demands $115 Million Reserve for EABL Sale

Kenya’s competition regulator has stalled Diageo’s $2.3 billion sale of its 65 per cent stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings.

The Competition Authority of Kenya proposed that EABL set aside up to 15 billion Kenyan shillings ($115 million) in reserve funds to cover potential liabilities and third-party claims before approving the transaction.

Diageo strongly rejected the regulatory requirement, asserting that there is “no basis whatsoever for these proposed conditions.”

Kenya demands a $115 million reserve for the EABL sale (News Central TV) — Kenya demands a $115 million reserve for the EABL sale. Credit: Reuters

A Diageo spokesperson stated that “the supposed concerns are entirely unrelated to the transaction, and their imposition would be unlawful,” adding that both Diageo and Asahi continue discussions with the authority to resolve the dispute.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.