The Board of Directors of East African Breweries PLC (EABL) has announced that Diageo PLC has agreed to sell its majority stake in EABL and its shareholding in UDV (Kenya) Limited to Japan’s Asahi Group Holdings.

The announcement was made in Nairobi on December 17, 2025, marking a decisive shift in ownership of one of East Africa’s most prominent listed companies.

The deal represents the first time a Japanese brewing major has made an investment of this magnitude in an African alcohol beverage business.

Through the acquisition, Asahi will become the majority owner of EABL, assuming control of operations across Kenya, Uganda, and Tanzania.

The new owner has committed to preserving EABL’s well-established local brands while also introducing globally recognised products from its international portfolio into the East African market.

According to details released by EABL, the estimated net proceeds of the transaction to Diageo after tax and transaction costs will amount to $2.3 billion, approximately Ksh 296.5 billion.

The valuation implies an enterprise value of $4.8 billion, or about Ksh 619 billion, for 100 percent of EABL, based on a multiple of 17 times adjusted EBITDA.

Transaction Value and Strategic Rationale

The transaction has been described as a strong vote of confidence in the long-term growth prospects of EABL and the broader East African region.

The company noted that the deal is underpinned by “robust demographic and economic prospects” that continue to position East Africa as an attractive consumer market.

EABL said it views the acquisition as the beginning of “a new chapter of growth” under Asahi’s ownership.

Jane Karuku, Managing Director and Chief Executive Officer of EABL, welcomed the development, stating that, “This acquisition marks a significant step in accelerating our growth ambition of becoming the most celebrated beverage business in Africa.”

She added that Asahi brings “significant knowledge and expertise in innovation and growing successful brands globally,” which will support EABL’s long-term ambitions.

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Diageo’s Exit and Future Partnership

For Diageo, the disposal forms part of a broader strategy to streamline its global portfolio and strengthen its balance sheet.

Interim Chief Executive Officer Nik Jhangiani said, “We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania.”

He noted that EABL and Diageo had built “the largest beer business in East Africa,” driven by a deep commitment to consumers and communities.

Jhangiani explained that the transaction would deliver “significant value for Diageo shareholders” while accelerating efforts to return the group to its target leverage ratio range of 2.5 to 3.0 times.

He also confirmed that Diageo would continue to partner with Asahi through the licensing of Diageo brands in the region going forward.

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Asahi’s Vision for East Africa

Asahi Group President and Chief Executive Officer Atsushi Katsuki described EABL as “a high-quality, leading company in Kenya, Uganda, and Tanzania,” citing its strong brand portfolio, marketing capabilities, and modern production facilities.

He said Asahi would pursue “sustainable growth and medium- to long-term enhancement of corporate value,” while contributing to local economic development.

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EABL MD and CEO Jane Karuku and Group Chairman Martin Oduor During the Release of Financial Results for EABL for the Year Ending 2023. PHOTO/ EABL