A legal battle between a local distributor and global beverage giants has taken a new turn, with the High Court declining to halt the USD 2.3 billion (Sh300 billion) Asahi-Diageo transaction.
Distributor Bia Tosha had moved to court seeking to stop the proposed share transfer involving Diageo, East African Breweries Limited, Kenya Breweries Limited, and United Distillers Vintners (UDV).
The distributor argued that the deal could affect its ongoing dispute with the companies and potentially weaken its position in Kenya’s lucrative beverage market.
Bia Tosha’s lawyers, Kenneth Kiplagat and Kiragu Kimani, told the court that the transaction could strip Diageo of its only asset in Kenya, raising concerns about how the distributor could enforce claims in the future.
However, the companies involved framed the application as an aggressive legal tactic aimed at disrupting a major corporate deal. Senior Counsel George Oraro, representing EABL, argued that the distributor’s dispute is separate from the transaction and cannot justify freezing a high-value deal.
Diageo’s counsel, Njoroge Regeru, described the move as an attempt to “weaponize conservatory orders” to gain leverage, warning that allowing such interference would set a dangerous precedent for corporate transactions.
Senior Counsel Githu Muigai, appearing for Cogno Ventures Limited, agreed, stressing that issuing orders at this stage would pre-empt the court’s full hearing.
Justice Bahati Mwamuye opted to hear all arguments fully before making any final determination, effectively letting the transaction move forward for now.
The court has scheduled April 9, 2026, for a ruling on the application.
