EABL Cleared to Advance Diageo Asahi Deal Approvals

East African Breweries Limited (EABL) can proceed with regulatory approval processes for the proposed sale of Diageo’s controlling stake to Japan’s Asahi Group. The High Court of Kenya ruled that statutory and preparatory regulatory steps should continue despite a parallel legal challenge. The decision, issued on January 12 2026, provides clarity on how the transaction can progress. It balances regulatory timelines with ongoing litigation.

Transaction details
The deal, announced in December 2025, involves Diageo selling its 65 percent shareholding in EABL and its interest in UDV Kenya to Asahi. Valued at about 2.3 billion dollars, the transaction remains subject to regulatory approvals in Kenya, Uganda, and Tanzania. Completion is targeted for the second half of 2026. The sale would mark a major shift in ownership of one of East Africa’s largest brewers.

Legal challenge continues
Bia Tosha Distributors Limited filed a case seeking to block the transaction, arguing that its long-running dispute with EABL over distribution rights should be resolved first. The company maintained that completing the sale could affect its ability to enforce any future judgment against Diageo. The court certified the matter as urgent. However, it declined to halt regulatory engagement tied to the transaction.

Next steps for stakeholders
The High Court allowed competition and capital markets applications to proceed while fast-tracking the Bia Tosha case for hearing in February 2026. Interim conservatory orders were extended until February 26 2026 but limited to the final stages of the deal. Market participants say the ruling reduces uncertainty for regulators and investors. Attention now turns to approval timelines and the outcome of the expedited hearing.