The High Court has cleared the way for the completion of a major transaction in Kenya’s beverage industry after dismissing a legal challenge seeking to block Diageo’s planned sale of its stake in East African Breweries Limited (EABL).
In a ruling delivered on Thursday, the court rejected a petition that aimed to halt the $2.3 billion (approximately KSh 300 billion) deal, in which London-listed Diageo intends to sell its 65% stake in EABL to Japan’s Asahi Holdings. The judge dismissed the application in its entirety, effectively removing a key legal hurdle that had threatened to delay the transaction.
The decision now paves the way for Diageo to proceed with the divestment, which was first announced in December 2025. The global spirits giant—known for brands such as Johnnie Walker whisky and Captain Morgan rum—has been pursuing the sale as part of a broader strategic shift aimed at reducing debt and revitalizing growth.
Under the agreement, Asahi Holdings will acquire a controlling stake in EABL, one of East Africa’s largest and most influential beverage manufacturers. The move is expected to reshape ownership dynamics in the regional alcohol market, potentially ushering in new operational strategies and investments under the Japanese brewer.
The case had drawn attention due to the size of the transaction and EABL’s significance in Kenya’s economy. However, with the court’s dismissal of the petition, the deal is now poised to move forward, subject to any remaining regulatory approvals and completion processes.