Kenya has given the green light for the Asahi Group to acquire the assets of Diageo Kenya

Kenya's competition authority announced on Friday that it has approved an application from Japan's Asahi Group Holdings Limited to gain sole control of Diageo's assets in Kenya.

The London-listed Diageo announced in December 2025 that it was selling its 65% stake in East African Breweries Limited to Asahi for $2.3 billion as part of its strategy to exit the African market.

The authority stated that it has approved the transaction between Diageo Kenya Limited and UDV Kenya Limited, with the stipulation that the merged entity must allocate at least 20% of the refrigeration space offered to retail outlets for products that are not branded by EABL or Asahi.

Bloomberg initially reported the approval on Thursday.

The deal encountered multiple obstacles in Kenya, such as a lawsuit from distributor Bia Tosha that was dismissed in April. This led EABL to request in June that Kenya's chief justice expedite the related hearings.

As part of the approval, the competition authority stated that EABL would need to allocate adequate funds from the transaction to address any outstanding liabilities and ensure that the merger does not negatively impact the continuity of supplies and services or the sustainability and growth of small businesses.