Kenyan High Court Clears Path for Asahi's Acquisition of East African Breweries

Legal Challenge Falls Short

Bia Tosha had filed a notice of motion on January 5, 2026, requesting the court halt completion of the proposed transaction between Diageo and Asahi Group Holdings. The specific concerns raised by the petitioner were not publicly detailed in the court summary. However, Justice Mwamuye found the application lacked sufficient grounds for the relief sought.

"The petitioner's notice of motion dated 5th January 2026 is hereby dismissed," the judge stated, adding that any ancillary orders that could obstruct the deal's completion were also lifted. The case drew considerable attention within Kenya's corporate sector, with market participants watching closely to determine whether the legal action would delay or derail what would be one of the largest recent foreign investments in East Africa's beverages industry.

Transaction Advances to Regulatory Phase

London-listed Diageo announced in December that it had agreed to sell its 65 per cent stake in EABL to the Japanese brewer as part of a broader strategy to reduce debt and restore growth momentum. The ruling now allows the transaction to proceed toward its final stages under the oversight of relevant competition and regulatory authorities.

EABL issued a statement welcoming the court's decision, describing it as reinforcing confidence in Kenya's regulatory and legal frameworks governing major corporate transactions. "This decision allows the transaction to proceed to completion through standard regulatory channels," the company stated.

The deal represents a strategic pivot for Diageo, which has faced pressure to strengthen its balance sheet while refocusing on core markets. For Asahi, the acquisition offers entry into East Africa's growing alcoholic beverages market through ownership of a established regional platform.