British drinks giant Diageo has urged Kenya’s Chief Justice to accelerate hearings on legal challenges seeking to block its planned US$2.3 billion sale of a controlling stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings.
iageoEABL, Diageo’s East African subsidiary, wrote to Chief Justice Martha Koome requesting faster resolution of several court cases challenging the transaction, according to a letter seen by Reuters.
The dispute follows Diageo’s announcement in December that it planned to sell its 65 percent stake in EABL to Asahi, in a deal valued at US$2.3 billion. The transaction is expected to be completed in the second half of 2026, subject to regulatory approvals and legal proceedings.
The latest challenge came after a minority shareholder last week obtained a court order temporarily halting the deal. The lawsuit argues that minority investors may not receive fair treatment and raises concerns over the structure of the transaction.
In its letter, EABL’s legal team warned of a “proliferation of parallel proceedings” and the possibility of conflicting court decisions. The company also raised concerns about what it described as “forum shopping”, alleging that a case filed at the High Court in Machakos was an attempt to obtain relief that had not been granted by the High Court in Nairobi.
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EABL said the transaction was governed by a time-sensitive contractual and regulatory timetable involving multiple countries and that delays could affect the completion process.
“There is a risk of conflicting orders,” the company said in the letter, according to Reuters.
Diageo said it remained confident in the merits of the deal and would take all necessary steps to protect its position while respecting Kenya’s judicial process.
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EABL also defended the transaction, saying the sale would benefit the Kenyan economy and accusing opponents of using coordinated litigation to disrupt the agreement for private commercial interests.
Of three previous legal challenges against the deal, two have been dismissed, while the outcome of the third remains unclear.
The proposed sale represents one of the largest corporate transactions involving an East African company and would transfer control of a major regional brewer to Asahi, which has been expanding its international footprint.
EABL produces some of East Africa’s best-known beer brands and operates in several markets including Kenya, Uganda and Tanzania. The company is a major contributor to tax revenues, employment and agricultural supply chains in the region.
