Kenyan politician and former 2022 presidential running mate Justina Wamae has linked British multinational Diageo’s decision to sell its controlling stake in East African Breweries Limited (EABL) to persistent challenges in Kenya’s beverage industry, including high production costs, rampant counterfeits, and heavy taxation.

In a post on X dated December 18, 2025, Wamae wrote, “Diageo exits Kenya – nikama hawataki twende Singapore pamoja. High cost of production, counterfeits, high taxation, etc., will stagnate everything.”

Diageo’s sale of EABL

The announcement came on December 17, 2025, when Diageo agreed to sell its 65% stake in EABL to Japanese beverage giant Asahi Group Holdings for $2.3 billion (approximately Ksh 300 billion).

The transaction also includes Diageo’s 53.68% stake in UDV (Kenya) Limited, a spirits producer, valuing EABL at around $4.8 billion and marking one of the largest foreign acquisitions in Kenya’s corporate history.

EABL, founded in 1922, manufactures and distributes beer, spirits, and ready-to-drink beverages across East Africa, with iconic brands including Tusker, Senator, Serengeti, Kenya Cane, and Chrome.

For the year ended June 2025, EABL reported net sales of Ksh 128.8 billion ($996 million), EBITDA of Ksh 33.3 billion ($258 million), and employed over 1,500 people in the region.

Under the deal, EABL will remain listed on the Nairobi Securities Exchange as well as exchanges in Uganda and Tanzania. Asahi plans to collaborate with existing management and employees to drive sustainable growth, while long-term licensing agreements will allow EABL to continue producing and distributing Diageo brands such as Guinness, Johnnie Walker, and Smirnoff Ice.

Diageo emphasised that the sale aligns with its strategy to divest non-core assets and reduce leverage, while retaining regional operations through licensing agreements.

Industry challenges highlighted

Wamae’s comments underscore enduring sector challenges, including counterfeit alcohol, which authorities targeted in recent operations seizing products worth millions of shillings.

High taxation on alcoholic beverages has also been flagged as a factor driving consumers toward illicit alternatives. The transaction is expected to close in the second half of 2026, subject to approvals from competition authorities in Kenya, Uganda, and Tanzania.

EABL has confirmed that the deal will not affect its operations, balance sheet, or obligations, including its Ksh 20 billion medium-term note programme.