East African Breweries Limited (EABL) has tightened its grip on Uganda Breweries Limited (UBL) by increasing its stake to 98.32 per cent.

This move marks a significant milestone in EABL’s continued expansion and consolidation across the East African market, reinforcing its competitive position in the region’s highly dynamic alcoholic beverage industry.

The latest acquisition follows EABL’s tender offer, launched in September 2024, aimed at acquiring the remaining 1.81 per cent of UBL shares at a price of 5,630 Uganda Shillings per share (approximately Sh194).

By March 2025, shareholders had tendered a total of 151,156 shares, allowing EABL to solidify its operational control over one of its most vital subsidiaries. According to EABL’s company secretary, Angela Namwaka, this transaction brings EABL’s total holdings in UBL to 118,444,469 ordinary shares, representing 98.32 per cent of the issued ordinary shares of the Ugandan unit.

Uganda Breweries plays a crucial role in EABL’s financial performance. In the financial year ending 2023, Uganda accounted for 21 per cent of EABL’s net sales, contributing Sh124.1 billion—a 13 per cent increase from the previous year.

The beer market in Uganda showed strong momentum, growing by 12 per cent, while spirits saw a 10 per cent rise, further highlighting the country’s importance as EABL’s second-largest market after Kenya, which generates 65 per cent of its sales. Tanzania follows closely with a 14 per cent share.

EABL’s expansion strategy extends beyond Uganda, as the company operates a network of subsidiaries across East Africa. In Kenya, it fully owns Kenya Breweries Limited and East African Maltings Limited, while holding a 46.32 per cent stake in United Distillers Vintners Kenya Limited. In Uganda, EABL controls International Distillers Uganda Limited and East African Maltings Uganda Limited, alongside its majority stake in UBL.

Near-total ownership of UBL

In Tanzania, it has a 51 per cent shareholding in Serengeti Breweries Limited and runs East African Breweries Tanzania Limited. The group’s influence further stretches to Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo (DRC) through third-party distribution agreements.

With its near-total ownership of UBL, EABL can now streamline decision-making, optimize production, and strengthen distribution networks in Uganda. The move is expected to drive long-term profitability and enhance shareholder value while cementing EABL’s market leadership. The acquisition aligns with the company’s broader strategy of reinforcing dominance across East Africa and improving operational efficiency within its subsidiaries.

EABL’s parent company, Diageo Plc, has also been making strategic moves to solidify its presence in the region. In March 2023, Diageo Kenya Limited, a wholly owned subsidiary of Diageo, completed a partial tender offer to increase its stake in EABL from 50.03 per cent to 65 per cent at a price of Sh192 per share.

Diageo’s decision underscores its confidence in EABL’s resilience and growth potential, particularly in the wake of challenges such as the COVID-19 pandemic and shifting consumer trends. Its African strategy focuses on local manufacturing and sourcing, with 80 per cent of ingredients procured locally to support economic growth while expanding both its beer and spirits portfolio. This approach has enabled EABL to maintain a strong regional presence while benefiting from Diageo’s extensive expertise and resources.