Diageo is set to net approximately Ksh.296 billion (about $2.3 billion) after agreeing to sell its controlling stake in East African Breweries Plc (EABL) to Japan’s Asahi Group Holdings.
This is one of the largest corporate exits ever recorded in East Africa’s consumer goods sector.
In a statement, Diageo valued EABL at an implied enterprise value of Ksh.618 billion ($4.8 billion).
The Ksh.296 billion deal has been valued at 65 percent, pointing to strategic interests in foreign firms’ interest in East Africa. EABL is headquartered in Kenya.
“Today, Diageo announces that it has entered into an agreement to sell its 100% shareholding in Diageo Kenya Limited, which holds 65.00% of the shares in EABL to Asahi, including its shareholding in the Kenyan spirits business, UDVK,” said Diageo on its website.
The proceeds, net of tax and transaction costs, will be used to strengthen Diageo’s balance sheet, reduce leverage, and support its broader strategy of selectively exiting non-core assets while concentrating capital on priority global brands and markets.
Diageo has said the disposal will “materially improve its leverage metrics and accelerate progress toward its medium-term financial targets.”
Despite exiting as a shareholder, Diageo will maintain a commercial presence in East Africa through long-term licensing and distribution agreements.
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EABL will continue to produce and distribute Guinness under licence, as well as selected Diageo international spirits and ready-to-drink brands. At the same time, EABL will retain ownership of key local brands such as Tusker and Kenya Cane.
“We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward,” said Nik Jhangiani Interim Chief Executive Officer of Diageo.
The Japanese group already has a modest but expanding footprint on the continent through minority stakes and distribution partnerships in selected African markets, including parts of Southern Africa and North Africa, as well as commercial partnerships that support the sale of its global brands across emerging markets.
Atsushi Katsuki, President and Group Chief Executive Officer, Director and Representative Executive Officer of Asahi said the EABL acquisition brings Asahi’s exposure to Africa by giving it a leading platform in Kenya, Uganda, and Tanzania, markets with strong demographics, rising consumer spending, and long-term growth potential.
Asahi has described EABL as a high-quality business with strong brands, modern production facilities, and deep local market knowledge.
The transaction is expected to be completed in the second half of 2026, subject to regulatory approvals.
