A Kenyan beer distributor has moved to the High Court seeking urgent orders to stop British multinational Diageo PLC from selling its stake in East African Breweries Limited (EABL), warning that the planned transaction could permanently undermine the enforcement of court orders.
Bia Tosha Distributors Limited is asking the court to restrain Diageo, its agents, subsidiaries, or affiliates from selling, transferring, pledging, or otherwise disposing of its shareholding in EABL and its Kenyan subsidiaries pending the hearing and determination of the case.
Court Orders Service Ahead of Hearing
High Court Judge Bahati Mwamuye directed Bia Tosha to serve court papers on Kenya Breweries Limited, UDV Kenya Limited, EABL, and Diageo ahead of the inter partes hearing scheduled for Friday.
Bia Tosha is also seeking conservatory orders to preserve the current ownership and control structure of Diageo’s shares, arguing that without court intervention, the case would be rendered futile.
Alleged Secret Sale to Japan’s Asahi
In court filings, the distributor claims Diageo is planning to divest its Kenyan assets through a private deal involving Japan’s Asahi Group Holdings Limited, effectively exiting the Kenyan market.
According to Bia Tosha, Diageo could initiate the sale process within 14 days from December 18, 2025, raising fears that the transaction could be fast-tracked before the court has a chance to intervene.
The distributor warned that once the shares are sold, enforcement of any future court decree against a foreign multinational would become nearly impossible.
Claims of Defiance of Kenyan Courts
Bia Tosha told the court that Diageo’s foreign status, combined with what it described as a history of disobeying Kenyan court orders, poses a serious risk to the administration of justice.
In a supporting affidavit, Managing Director Anne-Marie Burugu accused Diageo of showing contempt for Kenyan courts and institutions, alleging a deliberate and consistent pattern of defiance.
She further claimed the timing of the planned sale—during the Christmas holiday period—was calculated to fast-track the transaction, neutralize opposition, and defeat the distributor’s legal claims.
Public Interest and Constitutional Issues Raised
Bia Tosha argued that securing Diageo’s shareholding is not only necessary to protect its commercial interests but also serves the public interest, warning that allowing a multinational corporation to exit the country while litigation is pending would set a dangerous precedent.
The distributor urged the court to treat the petition as a test case against what it termed one of the most blatant examples of multinational defiance of court authority in Kenya.
The matter is set for further directions.