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Kenya Regulator Demands Sh15B Reserve for Diageo-Asahi Deal
17 Aug
Summary
- Kenya's regulator wants 15 billion shillings reserve fund.
- The reserve is for potential liabilities linked to EABL.
- Diageo disputes the conditions, calling them unlawful.
Kenya's competition authority has put forward a significant condition for the approval of Diageo's sale of its majority stake in East African Breweries Ltd (EABL). The regulator is reportedly seeking a reserve fund of up to 15 billion Kenyan shillings ($115 million) for EABL.
This proposed reserve is intended to cover potential liabilities and third-party claims connected to EABL. However, Diageo has strongly refuted these conditions, asserting that they are baseless, unlawful, and have no connection to the transaction. Diageo and Asahi are reportedly in discussions with the Kenyan Competition Authority regarding this issue.
The original agreement, struck in December 2025, saw Diageo consent to sell its 65% share in EABL to Asahi Group Holdings for approximately $2.3 billion. This deal has encountered multiple legal obstacles within Kenya, including a dismissed suit by distributor Bia Tosha and another case where a minority shareholder temporarily halted the proceedings.
