By Andrew Kariuki

A Kenyan court has dismissed an application seeking to block the planned sale of East African Breweries Limited (EABL) by Diageo to Asahi Group Holdings, paving the way for the transaction to proceed.

The deal, valued at Ksh297 billion ($2.3 billion), involves Diageo selling its 65 per cent stake in EABL as part of a broader strategy to reduce debt and revive growth.

The sale had faced a legal challenge after beer distributor Bia Tosha filed a petition in January seeking to halt the transaction over a dispute dating back to 2016 concerning alleged unfair termination of distribution rights.

However, in a ruling delivered on Thursday, Justice Bahati Mwamuye dismissed the application.

“The petitioner’s notice of motion dated 5th January 2026 is hereby dismissed,” the judge ruled, adding that any orders that could hinder completion of the deal were lifted.

The decision allows the transaction—one of the largest in Kenya’s corporate sector—to move forward.

EABL welcomed the ruling, stating it would continue to pursue its position in the underlying dispute.

Diageo announced the planned sale in December as part of efforts under new leadership to streamline operations amid market pressures, including changing consumer preferences and global economic uncertainty.

For Asahi, the acquisition forms part of its expansion strategy into markets such as Africa and South America, with the company citing EABL’s brand portfolio and production capacity as key attractions.

The deal is expected to be completed in the second half of the year.