NAIROBI, Sept 11 – Kenya’s competition regulator has approved Diageo Plc’s proposed sale of its 65% stake in East African Breweries Plc (EABL) to Japan’s Asahi Group Holdings, clearing a key regulatory hurdle in the $2.3 billion transaction.
Diageo, the London-listed owner of the Guinness and Johnnie Walker brands, announced the agreement in December 2025 as part of a broader strategy to exit its African operations. The transaction will transfer control of EABL, one of East Africa’s largest brewing companies, to Asahi.
According to Reuters, East African Breweries confirmed the regulatory approval in a statement.
“EABL notes the approval by the Competition Authority of Kenya regarding the proposed transaction between Diageo PLC and Asahi Group Holdings, Ltd,” the company said.
The Competition Authority of Kenya (CAK) attached conditions to its approval, including a requirement for EABL to set aside sufficient proceeds from the transaction to cover any outstanding liabilities.
The regulator also directed EABL to reserve 20% of cooler space in retail outlets for competing beverage brands, according to a Bloomberg report cited in the source.
The conditions underscore regulatory concerns over competition in Kenya’s alcoholic beverages market, where EABL holds a dominant position across several beer and spirits categories.
The transaction has encountered legal and regulatory obstacles in Kenya. A lawsuit brought by distributor Bia Tosha was dismissed in April, after which EABL asked Kenya’s chief justice in June to accelerate hearings related to the dispute.
Kenya’s Business Daily reported in August that the competition regulator had proposed requiring EABL to establish a reserve of as much as 15 billion Kenyan shillings ($116 million) before granting approval for the transaction.
The approval brings Asahi closer to completing its expansion into Africa’s beer market through the acquisition of EABL, while allowing Diageo to advance its strategy of reducing its direct exposure to the continent.
