The High Court of Kenya has issued directions to speed up hearings in the ongoing legal dispute between East African Breweries PLC (EABL) and Bia Tosha Distributors Limited. The court has structured the proceedings into two separate tracks to ensure that urgent matters are addressed without delay, while allowing essential regulatory work for a major share transaction to proceed.
In a significant development, the court recognized the urgency of an application by Bia Tosha, which seeks to block the sale of Diageo’s shares in EABL to Japan’s Asahi Group. Following this, the judge ordered an expedited hearing specifically for this issue. Importantly, the court ruled that regulatory approvals and preliminary steps required for the transaction should continue uninterrupted. This means that EABL can proceed with necessary engagements with East African regulators overseeing competition and capital markets approvals.
Additionally, by consent of all parties, the court extended interim conservatory orders until 26th February 2026. However, the court clarified that these orders only restrain the final steps of the transaction, such as the actual transfer of shares, and do not hinder the preparatory regulatory processes.
Alongside the urgent application, the court also addressed the main petition, which originates from a dispute filed by Bia Tosha in 2016 concerning local beer distribution routes.The judge directed that this case be heard on a priority basis to resolve the long-standing conflict. Currently, Bia Tosha has been granted ten days to update its claims after nearly a decade of litigation.
EABL’s Stance and Next Steps
EABL has consented to the court’s directions in the interest of speeding up the legal process. EABL maintains that the main 2016 distribution dispute is unrelated to the global share sale between Diageo and Asahi. Meanwhile, the urgent application is scheduled for hearing on 26th February 2026, with a ruling expected shortly thereafter.
In a statement, EABL welcomed the court’s decision to fast-track the hearings. The brewer expressed satisfaction that the regulatory process remains on track and voiced confidence that an expedited resolution will ultimately be in its favour, reiterating that the case is a commercial matter pertaining solely to Kenya Breweries Limited (KBL).
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