Kenyan High Court Paves Way for Diageo’s $2.3B EABL Stake Sale to Asahi
A Kenyan High Court has dismissed the latest legal challenge seeking to block Diageo’s landmark $2.3 billion sale of its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. This decision clears the path for one of the largest corporate transactions ever executed in the region.
In a ruling delivered on June 17, 2026, Justice Gregory Mutai declined to grant conservatory orders sought by JILK Construction Company Limited. The company had aimed to halt the deal until a KSh 2.45 billion compensation dispute linked to the construction of Kenya Breweries Limited’s Kisumu brewery was resolved. The court emphasized that the transaction carries significant public-interest and public-finance implications. EABL welcomed the ruling in an official statement the same day.
The deal, originally announced in December 2025, values EABL at an implied enterprise value of $4.8 billion (a 17x adjusted EBITDA multiple). It is part of Diageo’s strategic drive to:
- Shed non-core assets
- Reduce debt
- Counter pressures from U.S. tariffs and shifting consumer demand
Despite the ownership transfer, Diageo will retain its East African brand presence through long-term licensing agreements covering Guinness, Smirnoff, Captain Morgan, and other flagship products. The acquisition marks the largest-ever investment by a Japanese brewing group in an African alcoholic beverage business. Completion remains subject to antitrust approvals in Kenya, Uganda, and Tanzania, expected before year-end 2026.
Source: The Kenya Times – High Court Rejects Bid To Halt EABL Stake Sale To Asahi Group