On 17 December 2025, Diageo formally announced an agreement to sell its 65% stake in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings in a deal valued at US$2.3 billion. The transaction, which also includes Diageo’s stake in Kenyan spirits business UDV Kenya Limited (UDVK), values EABL at an implied enterprise value of approximately US$4.8 billion.
The deal marks Diageo’s final major brewing divestment in Africa and forms part of the company’s broader strategy to streamline its portfolio and strengthen its balance sheet. According to Diageo, the disposal is expected to reduce its leverage ratio by approximately 0.25x, supporting its deleveraging agenda amid elevated debt levels and shifting global consumer trends.
The sale represents the culmination of Diageo’s gradual retreat from African brewing operations. In 2024, the company exited Guinness Nigeria through a transaction involving the Tolaram Group, before completing the sale of its stake in Guinness Ghana Breweries to Castel Group in July 2025.
Despite the scale of the transaction, the deal encountered legal resistance in Kenya. In early 2026, beer distributor Bia Tosha Distributors sought to block the sale through an urgent court application linked to an ongoing dispute over distribution rights, leading to a temporary court freeze on aspects of the transaction.
A major hurdle was removed in April 2026, when the Kenyan High Court dismissed Bia Tosha’s petition, effectively clearing the path for the deal to proceed while allowing the separate distribution dispute to continue through the courts.
For consumers across East Africa, ownership changes will not mean the disappearance of familiar brands. Under the transaction structure announced in December 2025, Diageo committed to long term licensing agreements with EABL to ensure the continued production, distribution and marketing of brands including Guinness, alongside selected spirits and ready-to-drink products.
The agreement also preserves EABL’s public market presence. Following completion, the brewer is expected to remain listed on the Nairobi Securities Exchange, Dar es Salaam Stock Exchange and Uganda Securities Exchange.
The transaction remains subject to final regulatory approvals from authorities in Kenya, Uganda and Tanzania, with completion expected in the second half of 2026. Asahi and Diageo disclosed the timeline when the deal was signed on 17 December 2025.
Diageo has indicated that investors can expect a broader strategic update alongside its Fiscal 2026 full year results scheduled for 6 August 2026. If completed on schedule, the deal will usher in a new chapter for one of East Africa’s most recognizable corporate names. For Diageo, it represents a decisive step in balance sheet management and portfolio simplification. For Asahi, it is a major expansion move into African consumer markets. For East Africa, it signals the transition of one of the region’s flagship businesses into a new era of Japanese ownership.
