Kenya: Kenya's competition regulator seeks reserve fund in Diageo's EABL sale

Kenya’s competition regulator has proposed that East African Breweries Ltd. set aside up to 15 billion Kenyan shillings ($115 million) in reserve funds before approving Diageo’s planned sale of its majority stake in the brewer to Japan’s Asahi Group Holdings, Business Insider Africa reported on August 18.

The Competition Authority of Kenya (CAK) wants the reserve to cover potential liabilities and third-party claims linked to EABL, according to Kenya’s Business Daily. The proposed condition has added another hurdle to a transaction that has already faced legal challenges.

Diageo, however, has rejected the proposal, saying there is “no basis whatsoever” for the conditions.

Diageo agreed in December 2025 to sell its 65% stake in EABL to Asahi for about $2.3 billion, valuing the East African brewer at roughly $4.8 billion, according to a Reuters report. The transaction would mark Asahi’s major expansion into Africa and Diageo’s exit from direct ownership of EABL.

EABL is one of East Africa’s largest consumer-goods companies, with operations spanning Kenya, Tanzania and Uganda. Its portfolio includes brands such as Tusker and Guinness.

The brewer reported KSh128.8 billion ($1 billion) in revenue for the financial year ended June 2025, up 4% from the previous year, while profit after tax rose 12% to KSh12.2 billion.

The proposed reserve comes after several legal challenges to the transaction.

A Kenyan court dismissed a case brought by distributor Bia Tosha in April that sought to stop the sale. A separate case brought by a minority shareholder later resulted in a temporary order halting the transaction, prompting EABL to ask Kenya’s Chief Justice to expedite hearings related to the deal.

The latest regulatory condition could further delay completion of the transaction, which was originally expected to close in the second half of 2026.

18 August, 2026