A Kenyan beer distributor has mounted a legal challenge to Diageo’s plans to sell its East African Breweries (EABL) stake to Asahi for $2.3bn.
Bia Tosha has asked Kenya’s High Court to block the proposed sale until its own litigation against Diageo and EABL is settled, the firm’s lawyer said on Wednesday (7 January).
The case dates to 2016 when Bia Tosha sued EABL after the brewer declined to sign a new contract with the distributor, The Grocer understands. Bia Tosha no longer distributes for EABL in Kenya and its routes have been taken over by other distributors.
Kenya’s High Court has certified the case as urgent and set a hearing date for Friday (9 January), Bia Tosha’s lawyer told Reuters.
Diageo announced it had reached an agreement to sell its 65% holding in EABL to Asahi last month, as it looks to further streamline its beer business.
The Guinness brand owner declined to comment on the ligitation when approached by The Grocer.
Diageo’s planned EABL stake sale is the latest in a series of disposals by the group in Africa.
Last January, the group struck a deal to sell its stake in the publicly listed Guinness Ghana Breweries to French drinks group Castel for $81m. It had previously sold its Guinness brewing business in Cameroon to Castel in 2022.
In 2024, it sold its shareholding in the publicly-listed listed Guinness Nigeria to Singapore-based consumer group Tolaram.
EABL is the largest beer business in East Africa and produces popular local brands including Tusker.
Shares in Diageo fell 2.1% in early trading on Wednesday.
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