Paul Arithi 
Diageo announces that it has entered into an agreement to sell its 100% shareholding in Diageo Kenya Limited, which holds 65.00% of the shares in EABL to Asahi, including its shareholding in the Kenyan spirits business, UDVK.
Asahi is a Japanese listed global beverage leader offering a diverse portfolio of brands centred on beer, alcohol and non-alcoholic beverages, as well as food.
EABL, which owns the other 46.32%, has management control and fully consolidates UDVK.
EABL is the largest beer business in East Africa with a heritage that dates back over a century and has delivered a strong growth track record in Kenya, Uganda and Tanzania.
Asahi intends to preserve beloved local brands while introducing globally recognised names from its portfolio to consumers in East Africa.
EABL benefits from state-of-the-art production facilities, a seasoned Board and management team with extensive experience, and strong relationships with employees, local partners and customers.
Diageo has committed to enter into long term licensing agreements as well as transitional service agreements with EABL.
Locally owned brands will remain owned by EABL (e.g. Tusker, Kenya Cane).
There will be refreshed agreements for EABL to produce certain Diageo spirits (e.g. Smirnoff, Captain Morgan) and ready-to-drink brands (e.g. Smirnoff Ice, Orijin), as well as the iconic Guinness brand under licence and the import and distribution of Diageo international premium spirits.
Nik Jhangiani Interim Chief Executive Officer of Diageo said: “We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward.
This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet. We remain committed to returning the Group to well within our target leverage ratio range of 2.5 – 3.0x through disposals of non-strategic, non-core assets, alongside delivering positive operating leverage, and tighter capital discipline. This disposal, alongside the recent announcement by USL1 to conduct a strategic review of its ownership of RCB2, represent material steps in delivering on this commitment.”
USL – United Spirits Limited, India.
RCB – Royal Challengers Bengaluru cricket team
Atsushi Katsuki, President and Group Chief Executive Officer, Director and Representative Executive Officer of Asahi added:
“This business is a high-quality, leading company in Kenya,Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares.
Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.”
Financials
In the fiscal year ended 30 June 2025, EABL reported net sales of $996m, $258m EBITDA and net income of $94m, with net debt at $229m.
Listings;
Asahi expects EABL to remain listed on the Kenya, Uganda and Tanzania stock exchanges post completion.
Foreign exchange rates for KES:USD used to translate net sales, EBITDA, net income at fiscal 25 cumulative weighted average rate 129.28.
Net debt at spot rate 30 June 2025 129.23
