The Milimani High Court has dismissed a last-minute attempt by local distributor Bia Tosha to freeze the blockbusting Ksh300 billion acquisition of East African Breweries Limited (EABL) by Japanese corporate giant Asahi Group Holdings.
In a decisive ruling delivered on Tuesday, June 2, 2026, Judge Gregory Mutai threw out Bia Tosha’s urgent application to block UK-based multinational Diageo PLC from selling its controlling stake in EABL.
The court found that the distributor had improperly mounted simultaneous legal battles in different courts, effectively clearing the primary legal obstacle to one of East Africa’s largest corporate mergers.
“In my view, Bia Tosha’s May 4, 2026 application lacks merit and is hereby dismissed, with the applicant ordered to pay the legal costs incurred by EABL, KBL, Diageo PLC, and the other respondents,” Judge Mutai ruled.
The legal standoff centres on a May 4 application where Bia Tosha sought orders halting the proposed transaction, expressing deep concerns that an exit by Diageo would leave the local company with no fallback option if it wins its separate, decade-long distribution damages lawsuit against EABL.
However, the defence team representing EABL, Kenya Breweries Limited (KBL), United Distillers and Vintners Limited (UDV) Kenya, and Diageo PLC vehemently opposed the commercial freeze. They argued that Bia Tosha was trying to leverage the high-profile merger to salvage its old distribution grievances through manufactured panic.
“A party cannot delay seeking its rights and then expect the Court to treat its own procrastination as an emergency; that is simply not the legal standard for granting conservatory orders.” EABL lawyers stated.
In his detailed breakdown, Judge Mutai pointed out that after an initial ruling by Judge Mwamuye, Bia Tosha had already elected to pursue conservatory orders before the Court of Appeal. Even though the appellate application was certified urgent, no transaction freeze was issued by the higher court.
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Judge Mutai ultimately ruled that while both the High Court and the Court of Appeal hold jurisdiction, they cannot exercise it concurrently over the same dispute. He noted that granting the orders would essentially amount to the High Court supervising the appellate court.
With the multi-billion shilling Diageo-Asahi transaction free to proceed toward regulatory clearance, the focus now shifts back to the local arena. The main historical petition regarding Nairobi distribution routes will be mentioned on July 2, 2026.
By Ochola Victor
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