Bia Tosha, a former distributor for Diageo in Kenya, has moved to the High Court seeking to stop the sale of the spirits giant’s stake in its Kenyan business to Japan’s Asahi Holdings.
The firm is challenging Diageo’s planned divestment of its majority shareholding in East African Breweries Limited (EABL).
According to Bloomberg on January 7, Bia Tosha asked Kenya’s High Court to halt the sale, citing unresolved legal disputes with Diageo’s Kenyan operations.
Bia Tosha Lawyer, Kenneth Kipligat, told the news agency that if Diageo goes ahead with the sale of its only asset in Kenya, the firm would be unable to enforce a judgment against the company.
“If they succeeded in disposing [of] their only asset in Kenya, we will not be able to execute a judgment against Diageo,” he said.
EABL, Kenya’s largest beer producer, is owned by global spirits giant Diageo.
Bia Tosha Moves to Court to Block Diageo’s Sale of EABL Stake to Asahi
The case has since been certified as urgent, with a hearing scheduled for Friday, January 9, when the court is expected to issue further directions.
“The court agrees with us that the matter is urgent and has fast-tracked it and given us a date for Friday,” he added.
Diageo, the world’s largest spirits producer, announced last month that it had agreed to sell its 65 per cent stake in EABL to Asahi in a deal valued at about $2.3 billion, citing changing consumer trends and global trade pressures.
Bia Tosha argues that the transaction should not proceed while related litigation remains unresolved.
For years, Bia Tosha has sought a fine of up to $300 million from East African Breweries Limited (EABL), along with a six-month imprisonment penalty for the company’s directors.
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The fine Bia Tosha is seeking could be one of the largest ever imposed on a distributor by EABL, representing roughly 20% of the company’s sales.
The dispute stems from allegations that EABL continues to trade illegally along distribution routes in Nairobi, Machakos, and Kajiado, in violation of a Supreme Court order.
Bia Tosha claims that by not returning these routes, the brewer has caused significant financial losses.
The company had been in a distributorship agreement with EABL since 2006, but EABL terminated the contract, prompting Bia Tosha to take legal action over the alleged breach of contractual obligations
Also Read: Diageo to Exit Kenya With Sale of Entire EABL Stake to Japanese Giant
Diageo to Exit Kenya With Sale of Entire EABL Stake
The court case comes after Diageo plc agreed to sell its entire shareholding in East African Breweries PLC (EABL) to Japan’s Asahi Group Holdings, Ltd.
The deal, which is subject to regulatory approvals, marks the multinational’s exit from Kenya’s largest brewing company.
In an announcement issued by EABL on December 17, 2025, the company said its board was notified by Diageo on the afternoon of Tuesday, December 16, 2025, of the imminent transaction.
Diageo currently holds 65 per cent of EABL’s issued shares through its wholly owned indirect subsidiary Diageo Kenya Limited, and 53.68 per cent of UDV (Kenya) Limited (UDVK) through Diageo Great Britain Limited.
The transaction will result in Diageo disposing of all its stake in EABL.
In a separate announcement issued in London, Diageo confirmed that it had agreed to sell its 100 per cent shareholding in Diageo Kenya Limited as well as its interest in the Kenyan spirits business, UDVK, to Asahi.
Diageo said the disposal is consistent with its strategy of selective divestment of non-core assets and strengthening its balance sheet.
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