High Court Declines to Halt Sh300 Billion Asahi-Diageo Deal

The High Court has once again declined to stop the multi-billion shilling Asahi-Diageo transaction, dealing a setback to efforts by distributor Bia Tosha to block the deal.

During proceedings on Wednesday, Justice Bahati Mwamuye ruled that the court would not issue interim orders halting the transaction before fully hearing arguments from all parties involved. The judge emphasized the need for caution, noting that making a rushed determination at this stage could prejudice the outcome of the case.

Bia Tosha, through its lawyers Kenneth Kiplagat and Kiragu Kimani, had argued that the proposed share transfer risks stripping Diageo of its only asset in Kenya, potentially undermining their claims in an ongoing distributorship dispute involving Kenya Breweries Limited (KBL), East African Breweries Limited (EABL), Diageo, and United Distillers Vintners (UDV).

However, Senior Counsel George Oraro, representing EABL, dismissed the claims, telling the court that Bia Tosha would not suffer any harm if the transaction proceeds.

He argued that the distributor’s dispute is not directly linked to Diageo and that the transaction would not affect EABL’s ability to meet any financial obligations.

“There is no connection between the proposed transaction and EABL’s capacity to settle any dues owed to Bia Tosha,” Oraro submitted.

Diageo’s lawyer, Njoroge Regeru, also opposed the application, terming it an attempt to derail a legitimate commercial transaction valued at approximately USD 2.3 billion (Sh300 billion).

He argued that conservatory orders should not be used as leverage in unrelated disputes.

Senior Counsel Githu Muigai, appearing for interested party Cogno Ventures Limited, supported the respondents’ position, warning that granting the orders sought would effectively determine the case prematurely without a full hearing.

The court has now directed all parties to return on April 9, 2026, when it will deliver its ruling on the application.