Kenyan court suspends challenge to EABL acquisition
Written by Black Hot Fire Network Team on January 10, 2026
A Kenyan court has postponed a hearing concerning an attempt to block the sale of Diageo’s business in the country to Asahi Group Holdings. The postponement follows an initial application for an injunction that was not immediately granted.
Background of the Deal
In December, Asahi Group Holdings agreed to acquire a 65% stake in East African Breweries (EABL) and a 53.7% shareholding in Kenyan spirits group UDVK from Diageo for $2.3 billion. EABL produces brands such as Tusker and Serengeti beer.
Court Order and Postponement
Earlier this week, Bia Tosha, a former distributor for Diageo in Kenya, sought an ex parte injunction to prevent the sale. The court subsequently issued a temporary preservation order valid until January 20, restraining only the final steps of the sale. A hearing on the matter has been rescheduled for January 20. Kenneth Liplagat, representing Bia Tosha, confirmed the postponement and stated a conservatory order is in place preventing the transfer of shares until the next hearing.
Impact on Transaction Timeline
EABL stated that the court order is not expected to affect the overall timeline of the transaction, which Diageo anticipates will be completed in the second half of this year. The court specifically allowed the regulatory approval process and preliminary steps to proceed without interruption. EABL emphasized the court recognized the significance of the transaction and declined to halt essential statutory processes.
Underlying Litigation
Bia Tosha’s request to halt the deal stems from ongoing legal action dating back to 2016 against EABL and its subsidiary, Kenya Breweries. This case relates to a dispute over a distribution contract. EABL maintains that this legacy commercial dispute regarding local distribution routes has no factual or legal connection to the shareholding of its parent company, Diageo.
Current Status of Bia Tosha
Just Drinks reports that Bia Tosha is no longer a distributor in the Kenyan market, with its distribution network having been taken over by other businesses.
