• Bio Tosha asked Kenya’s High Court to block Diageo’s $2.3 billion asset sale to Asahi.
• The transaction covers Diageo’s stakes in EABL and United Distillers Vintners Kenya.
• The court scheduled an urgent hearing that could delay completion planned for 2026.

In Kenya, Bio Tosha, one of Diageo’s distributors, filed a petition with the High Court to block the sale of the group’s stakes in two local subsidiaries to Japan’s Asahi Group Holdings.

The transaction, which Diageo announced in December, carries a total value of $2.3 billion.

The deal includes the sale of Diageo’s entire stake in Diageo Kenya Limited, which holds 65% of East African Breweries Limited (EABL) and a 53.68% stake in United Distillers Vintners Kenya (UDVK).

According to information reported by Bloomberg, Bio Tosha requested a suspension of the transaction because the distributor has pursued legal action since 2016 against Diageo, EABL, and UDVK over an alleged unfair competition dispute.

Bio Tosha said the completion of the sale would prevent the company from securing an effective judgment against Diageo in that case.

According to comments by Kenneth Kiplagat, Bio Tosha’s lawyer, which Reuters reported, Kenya’s High Court classified the case as urgent and scheduled a hearing for Friday, when the court is expected to issue its first decisions.

At this stage, Diageo has not publicly commented on the legal challenge.

Industry observers said the court action could delay the completion of the transaction, which Diageo initially planned to finalize in the second half of 2026.

The sale formed part of Diageo’s gradual reconfiguration of its brewing activities across Africa.

For several years, the British group has pursued targeted divestments to streamline its portfolio and shift toward a business model focused more heavily on licensing and local partnerships.

In 2023, Diageo sold its Guinness Cameroon subsidiary to France’s Castel Group.

The strategy continued in October 2024, when Diageo sold its stake in Guinness Nigeria to Singapore-based conglomerate Tolaram.

In July 2025, Diageo finalized the sale of its majority stake in Seychelles Breweries to Phoenix Beverages, a unit of Mauritius-based IBL Group, while retaining ownership of its brands and establishing licensing and royalty agreements.

During the same month, Diageo also transferred its majority stake in Guinness Ghana Breweries to Castel Group under a similar structure based on contractual brand exploitation arrangements.

Espoir Olodo