The High Court has refused to intervene in the USD 2.3 billion (Sh300 billion) Asahi-Diageo transaction, leaving a legal challenge by distributor Bia Tosha in limbo and highlighting the high-stakes nature of corporate disputes in Kenya.
Bia Tosha moved to court seeking to halt the proposed share transfer involving Diageo, East African Breweries Limited, Kenya Breweries Limited, and United Distillers Vintners (UDV).
The distributor argued that proceeding with the transaction could weaken its position in ongoing claims against the companies.
Lawyers for the distributor, Kenneth Kiplagat and Kiragu Kimani, claimed that the transfer of Diageo shares could remove the multinational’s only asset in Kenya, putting Bia Tosha at a disadvantage.
However, the court was persuaded by the respondents that the application was an attempt to use legal proceedings as a tactical tool.
Senior Counsel George Oraro, representing EABL, told the court that the distributor’s claims are unrelated to the transaction, and any financial remedies could still be pursued independently.
Diageo’s counsel, Njoroge Regeru, described the application as a “collateral attack” aimed at disrupting a legitimate business process, warning that allowing such interventions would create uncertainty in Kenya’s commercial environment.
Senior Counsel Githu Muigai, representing Cogno Ventures Limited, agreed, emphasizing that issuing orders at this stage would amount to prematurely deciding the case.
Justice Bahati Mwamuye declined to grant conservatory orders, stressing that all arguments must be fully considered before the court makes any determination. The matter has now been set for April 9, 2026, when a full ruling on the application will be delivered.
