In a transformative move for the African beverage industry, global spirits leader Diageo has reached a definitive agreement to sell its 65.0% controlling stake in East African Breweries PLC (EABL) to the Japanese multinational Asahi Group Holdings.
The transaction, valued at an estimated net proceeds of US$2.3 billion (about KES 300 billion), marks one of the most significant corporate acquisitions in the region’s history.
The deal values 100% of EABL at an enterprise value of US$4.8 billion, implying a robust 17x adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) multiple, a testament to EABL’s strong market position and the growth potential of the East African consumer market.
Diageo’s Exit and Asahi’s African Entry
The transaction involves the sale of Diageo’s 100% shareholding in Diageo Kenya Limited, which holds the majority stake in EABL. The acquisition also includes a 53.68% direct stake in UDVK, a Kenya-based spirits producer and importer that is currently fully consolidated by EABL.
The move comes at a time of significant leadership transition and strategic rebalancing for all parties involved:
Diageo: Led by Interim CEO Nik Jhangiani (following the departure of Debra Crew in July 2025 and ahead of Sir Dave Lewis taking the helm in January 2026), the company is focusing on balance sheet strengthening and selective disposals. The sale is expected to reduce Diageo’s leverage by approximately 0.25x.
Asahi Group Holdings: Under the leadership of Group CEO Atsushi Katsuki, the Japanese giant is aggressively expanding its global footprint. Known for premium brands like Asahi Super Dry and Peroni, Asahi’s entry into East Africa follows high-profile acquisitions in Australia and the UK.
EABL: Guided by Group Managing Director and CEO Jane Karuku, EABL remains the crown jewel of the regional brewing industry. Karuku has been instrumental in navigating the company through recent economic volatility and will continue to lead as the company transitions to Asahi’s majority control.
Brand Stewardship and Market Continuity
Despite the change in ownership, both companies have emphasised continuity for consumers and investors.
Guinness and International Spirits
Diageo has committed to long-term licensing agreements with EABL. This ensures that EABL will continue to produce and distribute global icons like Guinness, as well as local spirits and ready-to-drink (RTD) brands. EABL will also remain the exclusive importer and distributor of Diageo’s international spirits portfolio in East Africa.
Locally Owned Brands
Popular brands such as Tusker and Kenya Cane will remain under the ownership of EABL, with Asahi acting as the new controlling shareholder to support their regional growth.
Stock Exchange Status
EABL will remain a publicly traded entity, maintaining its listings on the Kenya, Uganda, and Tanzania stock exchanges, ensuring local investors continue to have a stake in the region’s largest manufacturer.
Continuing Trend of Global Consolidation
This sale is part of a broader “asset-light” strategy by Diageo in Africa. In recent years, the company has exited its units in Nigeria, Ghana (selling to Castel Group), Cameroon, Ethiopia, and the Seychelles. By offloading capital-intensive brewing operations while retaining high-margin licensing and distribution rights, Diageo aims to optimise its global profit margins.
The transaction is expected to close in the second half of 2026, pending the necessary regulatory approvals across East Africa.