Kenya’s competition regulator has approved the sale of Diageo’s 65% stake in East African Breweries Plc (EABL) to Japan’s Asahi Group Holdings for about $2.3 billion.
The deal is part of Diageo’s wider plan to leave the African market. The London-listed drinks company announced the proposed sale in December 2025 as part of a strategy to reshape its global business.
The Competition Authority of Kenya approved the transaction but attached conditions. EABL must set aside enough money from the sale proceeds to deal with any outstanding liabilities. The regulator also directed the company to reserve 20% of cooler space in retail outlets for competing beverage brands.
The transaction has faced several challenges in Kenya. A legal case brought by distributor Bia Tosha was dismissed in April. EABL later asked Kenya’s Chief Justice to speed up hearings related to the transaction.
The deal represents a major change in ownership for EABL, one of East Africa’s largest beverage companies. EABL has operations and business interests across several countries in the region, making the transaction significant for Kenya’s wider beverage and consumer-goods industry.
For Asahi, the acquisition provides an opportunity to expand its presence in Africa and gain greater access to East African markets. For Diageo, the sale supports its decision to reduce its direct exposure to the African market and focus resources on other parts of its global business.
The Kenyan regulator’s conditions are designed to protect competition in the beverage sector and ensure that the transaction does not unfairly restrict competing companies.
EABL acknowledged the regulator’s approval in a statement, while Diageo, Asahi and the Competition Authority of Kenya had not immediately provided further comments to Reuters.
The completion of the transaction will be closely watched by investors and businesses across East Africa because of the size of the deal and its potential impact on the region’s beverage industry.
