Kenya’s High Court has ordered East African Breweries PLC (EABL) to keep its current ownership structure in place, temporarily blocking Diageo from transferring its controlling stake to Japan’s Asahi Group Holdings. Justice Francis Gikonyo ruled that the structure as it stood on June 18 must remain unchanged until a Capital Markets Tribunal appeal is determined and the Competition Authority of Kenya (CAK) completes its review.
The order follows a petition by EABL shareholder Christine Irungu, who has challenged the transaction over disclosure and minority shareholder protections. The dispute focuses partly on Diageo’s decision to raise its EABL holding from about 50% to 65% through a 2022–2023 tender offer before agreeing to sell that stake to Asahi.
The court action adds another delay to a transaction announced in December 2025. Diageo agreed to sell its 65% EABL interest to Asahi as part of a deal expected to generate about $2.3 billion in net proceeds after tax and transaction costs. Asahi’s acquisition would give it control of EABL, which operates across Kenya, Uganda and Tanzania.
The timing matters because the business being transferred is performing strongly. EABL reported KSh146 billion in revenue for the year ended June 2026, up 13%, while profit after tax rose 49% to KSh18.2 billion. Total dividends increased to KSh12.70 per share.
That performance gives the ownership dispute a different commercial backdrop. Asahi is waiting to take control of a profitable regional brewer rather than a business in need of rescue. The buyer is also stepping into a distribution system and brand franchise that EABL has built across three markets over decades.
Drinkabl.media’s earlier reporting on the transaction identified distribution execution as one of the harder issues awaiting Asahi after closing. Its later coverage of CAK’s proposed KSh15.5 billion liability reserve showed that unresolved commercial claims had already become part of the approval process.
The latest order does not cancel the sale or rule that the transaction is unlawful. It keeps control where it was while the remaining legal and regulatory processes run their course.
For Diageo and Asahi, the next decision point is therefore regulatory clearance and the outcome of the Capital Markets Tribunal appeal. Until both move, the ownership change remains unfinished.
