A Kenyan beer company has filed a lawsuit seeking to block the $2.3 billion sale of East African Breweries Limited (EABL) by Diageo to Japan’s Asahi Group. The move has raised eyebrows in the Kenyan business community, as EABL is one of the most well-known and significant players in East Africa’s alcoholic beverage market.
The lawsuit was filed in a Kenyan court on January 7, 2026, as part of an effort to halt the transaction, which has been in the works for months. The Kenyan firm, which has not been named in the reports, claims that the sale, if allowed to proceed, would severely impact the local market and result in unfair competition. The company argues that Diageo’s decision to sell its majority stake in EABL to Asahi without consulting or considering the implications for local stakeholders is detrimental to Kenya’s economy.
EABL, the largest brewer in Kenya, is a major employer and a key player in the country’s economic landscape, known for popular brands such as Tusker, Kilimanjaro, and Guinness. Diageo, the British multinational beverage company, currently holds a majority stake in EABL and announced in late 2025 that it had entered into an agreement to sell its shares to Asahi for $2.3 billion. This move is part of Diageo’s broader strategy to refocus its operations and reduce its stake in non-core markets.
The Kenyan beer firm’s legal action is based on the argument that the deal would not only distort market competition but could also have broader social and economic consequences for local communities that depend on EABL’s production facilities and distribution network. The court is expected to hear the case in the coming weeks, with industry stakeholders keenly awaiting the outcome.
This legal challenge comes at a time when Kenya’s alcoholic beverage market is experiencing significant consolidation, with foreign investments increasing and competition intensifying. The outcome of this case could set a precedent for future foreign investments in Kenya’s key industries, particularly in sectors that are central to the country’s economy.
Asahi Group’s potential acquisition of EABL has already sparked discussions on the future of the Kenyan brewing industry, with some viewing it as a chance for growth and new opportunities, while others see it as a threat to local businesses and jobs. The final ruling on this case will likely have wide-ranging implications for both the local business environment and international investments in Kenya.
