Bia Tosha Withdraws Court Case Blocking Diageo’s $2.3 Billion EABL Deal

Beer distributor Bia Tosha Distributors Limited has withdrawn its legal challenge against a major deal involving East African Breweries PLC (EABL), Diageo and Japan’s Asahi Group Holdings.

The move removes one of the main legal challenges facing Diageo’s planned sale of its 65% stake in EABL to Asahi in a deal valued at about $2.3 billion.

During a High Court session on Thursday, May 28, 2026, Bia Tosha’s lawyer, Senior Counsel Kiragu Kimani, told the court that the company would withdraw its Further Amended Petition dated January 30, 2026.

The court then ordered the petition and related documents, including expert reports and affidavits, removed from the court record.

Bia Tosha Changes Course in Ongoing EABL Court Case

The latest development comes weeks after the High Court on April 9, 2026, dismissed Bia Tosha’s application seeking temporary orders to stop the transaction.

The case will now return to the original dispute filed in June 2016.

The remaining case focuses on claims linked to the termination of exclusive distribution routes in Nairobi and a request for a refund of about Ksh 38.3 million that Bia Tosha says it paid as goodwill.

Also Read: EABL Acquisition Plan Approved by Kenya, Uganda and Tanzania Regulators

Lawyers representing EABL and Diageo, including Senior Counsels Kamau Karori and George Oraro, told the court they wanted the matter concluded since it is among the oldest pending cases in the Constitutional Division.

The court also issued new timelines for the case.

EABL, Diageo and other parties were given 14 days to file responses linked only to the original 2016 petition. Bia Tosha will then have 10 days to file supplementary responses.

Other pending applications, including contempt of court claims, were put on hold to avoid delaying the main case.

The matter will be mentioned again on July 2, 2026, to confirm compliance with the court directions.

The main hearing of the 2016 petition is scheduled for July 20, 2026.

Original Dispute Between EABL and the Beer Distributor

The dispute between East African Breweries Limited (EABL) and Bia Tosha Distributors Limited began in 2016 over beer distribution rights in Nairobi and nearby counties.

Also Read: Former Attorney General’s Firm Challenged in Court Over Role in KSh 2.4 Billion EABL Row

Bia Tosha, owned by businessman Peter Burugu, claimed EABL unfairly ended some of its distribution routes and gave them to other distributors despite the company having paid millions of shillings in goodwill fees linked to the agreements.

The distributor moved to court seeking the return of its routes, a refund of the goodwill payments, and compensation for losses caused by the termination.

In June 2016, the High Court issued temporary orders preserving Bia Tosha’s distribution territories as the case continued.

The case later involved several court applications and appeals, including disputes over arbitration and contempt claims.

In 2023, the Supreme Court reinstated temporary orders protecting Bia Tosha’s routes and directed that the main case be heard quickly due to its long delay.

Bia Tosha says the termination caused huge financial losses, while EABL maintains it acted according to the distributorship agreements.

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EABL CEO Jane Karuku. PHOTO/EABL