Kenya’s antitrust authority has demanded a staggering 15 billion Kenyan shilling ($115 million) reserve fund to clear Diageo’s multi-billion-dollar divestment from East African Breweries Ltd.
The steep financial barrier, aimed at shielding potential liabilities and third-party claims, threatens to derail the British drinks giant’s planned exit.
Diageo agreed in late 2025 to sell its controlling 65 percent stake in the regional brewing powerhouse to Japan’s Asahi Group Holdings for roughly $2.3 billion.
However, the regulatory demand has effectively frozen the landmark acquisition in its tracks.
Firing back at the watchdog, Diageo dismissed the proposed escrow requirement as entirely baseless and unlawful.
The spirits giant insists the financial conditions bear no relevance to the underlying transaction.
Both beverage giants remain locked in high-stakes discussions with the Competition Authority of Kenya to break the regulatory deadlock.
The regulatory impasse marks the latest hurdle for a deal continuously battered by relentless legal challenges across Kenyan courts.
Distributors and minority shareholders have repeatedly sought judicial blockades, forcing East African Breweries to petition the country’s chief justice to expedite stalled proceedings.
As local regulators hold the line, the final fate of East Africa’s premier brewery hangs in limbo.