The High Court has dismissed an application by Bia Tosha Distributors Limited seeking interim orders to stop the completion of the proposed sale of stake involving Diageo PLC, Asahi Group Holdings and East African Breweries Limited (EABL).
In a ruling delivered on Tuesday, June 2, Justice Gregory Mutai found that Bia Tosha had already opted to seek relief at the Court of Appeal and could not return to the High Court to seek similar conservatory orders.
The judge therefore dismissed the fresh application dated May 4, 2026, with costs.
“I have considered the nexus of the issues raised and find the application to be without merit. The case has been dismissed,” the judge said.
The application sought to stop the deal from proceeding until the Court of Appeal determines a case challenging Asahi Group’s planned acquisition of Diageo’s 65 percent stake in EABL, a transaction valued at about US$2.3 billion (KSh297billion).
Asahi Clears Major Regulatory Hurdle in EABL Acquisition
On May 15, Asahi Group received regulatory exemptions in Kenya, Tanzania and Uganda, paving the way for its proposed acquisition of Diageo’s controlling stake in EABL.
The Japanese brewer announced that regulators in the three East African countries had exempted it from making a mandatory takeover offer to EABL’s minority shareholders under their respective takeover and mergers regulations.
The approvals meant Asahi would not be required to extend a buyout offer to public investors holding the remaining 35 percent stake in EABL, whose shares are listed on the Nairobi Securities Exchange, the Dar es Salaam Stock Exchange and the Uganda Securities Exchange.
Also Read: Court Clears Diageo Exit from EABL, Lifts Freeze on Ksh 297 Billion Sale to Asahi
High Court Clears Diageo Exit from EABL
The decision comes amid a series of procedural disputes that have dominated the case in recent months.
In April, the High Court dismissed an application by Bia Tosha Distributors Limited seeking to stop Diageo PLC from proceeding with the sale of its majority stake.
Justice Bahati Mwamuye struck out the application and lifted interim orders that had temporarily halted the transaction, allowing the proposed acquisition to move forward.
“The petitioner’s notice of motion dated 5th January 2026 is hereby dismissed,” ruled Bahati Mwamuye.
Also Read: Fresh Hurdle for Diageo as Another Petition to Stop EABL Sale is Filed
Bia Tosha, one of EABL’s distributors, had argued that the sale could affect its contractual rights and its ongoing legal disputes with the brewer.
Through its lawyer, Kenneth Kipligat, the company maintained that Diageo’s exit from Kenya could complicate the enforcement of any future judgment arising from those disputes.
However, the court found that the distributor had not met the legal threshold required to sustain the injunction.
It held that stopping the transaction would have far-reaching commercial implications and that the issues raised by Bia Tosha did not justify halting a major corporate deal.
The court further observed that the dispute between the parties was primarily contractual and could be addressed in separate legal proceedings without affecting the ownership transaction.
It also noted that Bia Tosha would still have access to legal remedies should it ultimately succeed in its claims.
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