Home BUSINESS. BEER DISTRIBUTOR BIA TOSHA SEEKS TO BLOCK DIAGEO’S EXIT FROM EABL.

BEER DISTRIBUTOR BIA TOSHA SEEKS TO BLOCK DIAGEO’S EXIT FROM EABL.

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BEER DISTRIBUTOR BIA TOSHA SEEKS TO BLOCK DIAGEO’S EXIT FROM EABL.

By Sam Alfan.

A beer distributor has moved to the High Court to stop British multinational Diageo PLC from selling its shares in East African Breweries Limited (EABL).

Bia Tosha wants the court to restrain Diageo, its agents, or affiliates from selling, transferring, pledging, or otherwise disposing of its shareholding in EABL and its Kenyan subsidiaries pending the hearing of the case.

The distributor is also seeking conservatory orders to preserve the current ownership and control of Diageo’s shares.

Justice Bahati Mwamuye directed Bia Tosha Distributors Limited to serve court papers on Kenya Breweries Limited, UDV (Kenya) Limited, EABL, and Diageo ahead of the hearing on Friday.

According to Bia Tosha, the orders are necessary to protect the subject of the petition and prevent the case from being rendered futile.

Bia Tosha further urged the court to bar Diageo from divesting its Kenyan assets in a manner that could frustrate enforcement of any court orders.

The firm said the orders should bind the shares regardless of any agreements entered into after the application was filed.

The distributor claimed Diageo plans to sell its shares through a private deal to Japan’s Asahi Group Holdings Limited and exit Kenya, risking non-enforcement of any eventual court decree.

It warned that Diageo could begin the sale process within 14 days from December 18, 2025, and argued that unless stopped, the petition would be irreversibly undermined.

Bia Tosha told the court that Diageo’s foreign status, coupled with its alleged history of disobeying court orders, creates a real risk that any final judgment would not be enforced. It said undertakings by Diageo would be insufficient.

The company maintained that securing Diageo’s shares is in the public interest and necessary to protect constitutional rights.

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 disobedience of court orders.

She claimed the planned sale was timed during the Christmas holidays to fast-track the transaction and defeat Bia Tosha’s interests.

Burugu also alleged that Diageo intends to override any individuals or institutions opposing the sale.

Bia Tosha argued that the petition should stand as an example of what it termed one of the most blatant defiance of court authority by a multinational company in Kenya.

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