Kenya: East African Breweries rules out investment slump ahead of takeover by Asahi

East African Breweries is planning for life after Diageo, with the transition now the company's top strategic priority, The Star reported on August 7.

The brewer said its focus has shifted to ensuring business continuity and a smooth handover once the Competition Authority of Kenya (CAK) approves Japan's Asahi Group Holdings' takeover.

Speaking after the company's full-year results announcement, EABL Managing Director Jane Karuku said operational preparations are already underway, marking the clearest indication yet that the company is planning for a post-Diageo era.

"Looking ahead, of course, the biggest agenda in front of us is transition. When we get that approval, we have to make sure that the business continues to perform, but also has a very successful transition because transitions are important and we all need to be all hands-on deck to make sure that we are successful," said Karuku.

Diageo announced in December 2025 that it intended to sell its stake in EABL to Asahi, one of Japan's largest beverage companies.

According to EABL, the transaction has secured several key regulatory approvals across the region, including an exemption from a mandatory takeover offer by Kenya's Capital Markets Authority, approvals from Uganda's Capital Markets Authority and Tanzania's Capital Markets and Securities Authority, as well as competition clearances in Uganda and Tanzania. Kenyanews analysis

The deal is now awaiting approval from the Competition Authority of Kenya, which management described as the final regulatory requirement.

According to the brewer's financials, capital expenditure has declined over the past two years.

However, EABL said it will maintain spending on expansion, brands and sustainability despite the impending ownership change, dismissing speculation that the moderation in capital expenditure is linked to the acquisition.

The brewer said investment decisions continue to be guided by business needs rather than the proposed transaction, adding that it remains committed to funding growth initiatives while awaiting the final approval.

EABL said the lower spending reflects the completion of a multi-year investment cycle across its operations in Kenya, Uganda and Tanzania. Kenyanews analysis

"The business has been on an investment journey in terms of capacities across all the sites in East Africa. At the moment, we are only investing what we believe is necessary," added the MD.

"We've not done anything that will constrain the growth of the business. The investment that has happened in the last two years is in line with the profile of the business requirements. There's nothing that the business has done in any way in respect of the transaction."

The brewer added that future capital allocation would remain disciplined, with investments directed towards projects supporting demand growth and improving operational efficiency.

"We have to invest behind any capital that we require within the business. Whether investment is stable, declining or increasing depends on the demand trends we are seeing."

The investments saw EABL post a 13 per cent increase in revenue to Sh146 billion and a record 49 per cent jump in net profit to Sh18.2 billion for the financial year ended June 2026.

"Kenya contributed 60 per cent of group sales, a five percent growth, while Uganda expanded by 16 per cent and Tanzania recorded the strongest recovery growth at 44 percent."

Beer remained a key growth driver, with the category expanding by nine per cent as lower excise taxes helped stimulate demand.

Premium brands also grew nine per cent, led by White Cap, while mainstream spirits surged 30 per cent, supported by new flavour innovations across Kenya, Uganda and Tanzania.

White Cap was the standout performer in the premium beer segment, while innovations such as Malta, Chrome and Sorghum-based products helped attract younger consumers seeking new flavours.

The company also reported growing demand for draft offerings, including Tusker, Guinness and White Cap, as consumers embraced new drinking experiences.

EABL executives declined to comment on how the business strategy could evolve under Asahi ownership, saying they do not want to jump the gun under competition rules but would lay out the plans once the transaction receives regulatory approval.

The reassurances came as EABL announced it had crossed the $1 billion (about Sh145 billion) revenue mark for the first time in its history.

07 August, 2026