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31 July 2025

Diageo eyes sale of Kenya’s EABL

Kenya | British drinks firm Diageo has launched a review of its majority stake in listed brewer East African Breweries Ltd. (EABL). EABL has a market value of about USD 1.2 billion and Diageo is its largest shareholder with a 65 percent stake. The company has appointed Bank of America and Goldman Sachs to advise on the process, Bloomberg reported on 28 July.

The review could lead to a full or partial sale of EABL’s beer business with analysts estimating the business could fetch up to USD 2 billion. Founded in 1922 as Kenya Breweries Ltd., EABL is a dominant player in East Africa’s alcoholic beverages market, operating in Kenya, Uganda, and Tanzania, and distributing to over ten African countries. Its product line-up includes brands like Tusker, Bell Lager, Kenya Cane, and licensed Guinness. This review aligns with Diageo’s push toward an asset-light model whereby the group seeks to free up capital and boost growth after a tough period.

The usual suspects

According to sources familiar with the matter, potential buyers could include Heineken, Castel Group, and AB-InBev. While no final decisions have been made, the move could significantly reshape East Africa’s brewing industry.

Last month, Diageo replaced CEO Debra Crew after a rocky two-year tenure. During her time, Diageo’s share price dropped by more than 40 percent, growth targets were scrapped, and the company issued a profit warning. Trade tensions have added to the challenges.

Over the past few years, Diageo has exited several African markets. The company sold its interests in Guinness Ghana, Guinness Nigeria, Guinness Cameroon, Seychelles Breweries, and the Meta Abo Brewery in Ethiopia. If completed, a sale of EABL would represent its most significant retreat from African brewing operations to date.

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