Diageo has agreed to sell its entire 100% shareholding in Diageo Kenya Limited to Japan’s Asahi Group Holdings, a move that will transfer control of Diageo’s indirect 65% stake in East African Breweries Limited (EABL) to the Tokyo-listed beverage giant.
The transaction also includes Diageo’s 53.68% directly owned stake in United Distillers Vintners Kenya (UDVK), a Kenyan spirits producer and importer. EABL, which owns the remaining 46.32% of UDVK, will retain management control and continue to fully consolidate the spirits business.
EABL is the largest beer producer in East Africa, with operations spanning Kenya, Uganda and Tanzania, and a heritage stretching back more than a century. The company reported strong financial performance in the year ended 30 June 2025, posting net sales of $996 million, EBITDA of $258 million and net income of $94 million, with net debt standing at $229 million.
Asahi said it intends to preserve EABL’s iconic local brands while gradually introducing selected global brands from its international portfolio to East African consumers. EABL will remain listed on the Nairobi, Uganda and Dar es Salaam stock exchanges following completion of the transaction.
As part of the deal, Diageo will enter into long-term licensing and transitional service agreements with EABL. Locally owned brands such as Tusker and Kenya Cane will remain under EABL ownership. New and refreshed licensing arrangements will allow EABL to continue producing and distributing major Diageo brands, including Smirnoff, Captain Morgan, Guinness, Smirnoff Ice and Orijin, as well as importing Diageo’s international premium spirits.
Diageo Interim Chief Executive Officer Nik Jhangiani said the sale marks a significant milestone for the group and reflects its strategy to strengthen its balance sheet through the disposal of non-core assets. He described EABL as a business built by “driven people with a passion for the consumers and communities they serve,” adding that Diageo looks forward to partnering with Asahi through brand licensing in the region.
Asahi Group CEO Atsushi Katsuki described EABL as a high-quality market leader with strong brands, advanced production facilities and deep local roots. He said the group aims to pursue sustainable growth while contributing to the development of East African economies.
The deal represents one of the most significant ownership shifts in East Africa’s beverage industry in recent years.