Kenya pension funds shift Sh105bn offshore to cut domestic market risks

Japanese beverage giant Asahi Group Holdings has been granted approval to take control of East African Breweries Plc (EABL) after the Competition Authority of Kenya (CAK) approved the sale of Diageo's 65% stake in the Kenyan brewery for $2.3 billion (approximately Ksh297.4 billion). This acquisition marks a new chapter for EABL, a major manufacturer in Kenya with brands including Tusker, Pilsner, and Guinness.

The CAK imposed a condition that at least 20% of refrigeration space provided to retail outlets must be reserved for products not branded by EABL or Asahi, ensuring competition remains robust. The deal is significant as it could influence investment, product strategy, distribution, and competition in Kenya's industrial sector, which expanded by 5.3% in the first quarter of 2026.

Asahi will now have access to EABL's established brands, manufacturing facilities, distribution networks, and relationships with retailers and suppliers across Kenya, Uganda, and Tanzania. The acquisition also has broader implications for Kenya's industrial ecosystem, including farmers, packaging manufacturers, transport companies, distributors, retailers, and hospitality businesses.

EABL's operations must maintain sufficient funds to meet outstanding liabilities and ensure continuity of supplies and services for small businesses.