Kenyan Alcohol Distributor Seeks To Block Diageo Sale Of EABL To Asahi Group

A Kenyan alcohol distribution firm, Bia Tosha Distributors, is seeking to block the sale of Diageo’s stake in East Africa Breweries Ltd to Japan’s Asahi Group Holdings pending the settlement of a case it won against the brewer in 2023. Shares in Diageo dropped 2% upon the announcement of this case.

Bia Tosha is asking the country’s High Court to freeze the landmark USD 2.3 billion sale, marking a major escalation in a decade-long legal battle over distribution route rights, and the payment of a non-refundable USD 295,000 in goodwill that the distributor paid EABL to secure those routes.

Bia Tosha, formerly one of EABL’s largest distributors, initially sued the brewer in 2016 following a dispute over exclusive distribution routes in key markets within Kenya. The firm alleges that EABL and its parent company, Diageo, engaged in anti-competitive practices by repossessing lucrative territories despite Bia Tosha having made the exclusivity payment.

In 2023, the Supreme Court of Kenya ruled in favour of Bia Tosha, ordering EABL to reinstate the distributor to its original routes. The court further allowed a contempt case against EABL’s executives to proceed, with Bia Tosha seeking damages and fines totaling the equivalent of 20% of EABL’s sales (approximately USD 300 million).

The current application seeks to halt the transfer of Diageo’s 65% controlling stake in EABL to Asahi until the claim is settled. Bia Tosha’s legal team argues that if the UK-based Diageo is permitted to divest its Kenyan assets, the distributor will have no recourse to recover damages should they prevail in the ongoing litigation.

“If they succeed in disposing of their only asset in Kenya, we will not be able to execute a judgment against Diageo,” Bia Tosha says.

In its defence, EABL has stated that the routes in question have “absolutely no factual or legal linkage to the announcement (of the sale).

“The application is merely the latest iteration of an unsuccessful 10-year campaign by a former employee and former distributor – now a serial litigant – to destabilise and damage EABL’s operations,” the sternly-worded press release continues.

The challenged deal, announced in December 2025, represents Japan’s largest-ever investment in the African beverage sector. Under the agreement, Asahi would acquire Diageo’s stake in EABL and its spirits arm, UDV Kenya, valuing the regional giant at approximately USD 4.8 billion.

The sale is part of Diageo’s global strategy to exit the brewing business in favour of a spirits-led licensing model. Diageo has already divested similar assets in Cameroon, Nigeria, and Ghana over the past 24 months.

The High Court has certified the matter as urgent, with a hearing set for January 9, 2026. WeeTracker will keep you updated as the case unfolds.