Kenya’s competition regulator has approved the sale of Diageo’s 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings for $2.3 billion.
The approval by the Competition Authority of Kenya clears a major step in the transaction, which Diageo announced in December 2025 as part of its plan to exit the African market.
The transaction covers Diageo’s Kenyan businesses, including Diageo Kenya Limited and UDV Kenya Limited, and will give Asahi control of the business once the deal is completed.
However, the regulator attached conditions to its approval. The merged business must reserve at least 20% of refrigeration space in retail outlets for products that are not owned by EABL or Asahi. The aim is to ensure that competing beverage companies continue to have access to retail markets.
The regulator also directed EABL to keep enough money from the transaction to settle any outstanding liabilities. It said the deal should not negatively affect the continued supply of products and services or the growth and sustainability of small businesses connected to the company.
The $2.3 billion transaction had faced legal challenges in Kenya. A case brought by distributor Bia Tosha was dismissed in April, while EABL later asked Kenya’s Chief Justice to speed up related court proceedings.
For Diageo, the sale represents a major change in its presence in East Africa. For Asahi, the acquisition provides an opportunity to expand its international business and take control of a major beverage company with operations across East Africa.
EABL is one of the region’s major beverage businesses, with operations and brands serving markets beyond Kenya. The company is listed on the Nairobi Securities Exchange and has a long history in East Africa.
The deal is therefore significant for Kenya’s business sector because it involves one of the country’s biggest corporate transactions and brings a major Japanese investor into greater control of a leading East African company.
