Kenya’s High Court has once again underscored the cautious approach of the judiciary in interfering with high-stakes corporate transactions, refusing to halt the USD 2.3 billion (Sh300 billion) Asahi-Diageo share transfer despite opposition from local distributor Bia Tosha.
Bia Tosha had approached the court seeking to suspend the proposed transaction involving Diageo, East African Breweries Limited, Kenya Breweries Limited, and United Distillers Vintners (UDV).
The distributor claimed that the deal could undermine its ongoing dispute with the companies and negatively affect its legal and financial position.
Lawyers representing Bia Tosha, Kenneth Kiplagat and Kiragu Kimani, argued that the share transfer would remove Diageo’s only asset in Kenya, threatening the distributor’s ability to enforce claims.
However, the companies’ legal teams rejected the argument, insisting that the distributor’s dispute is independent of the transaction. Senior Counsel George Oraro, representing EABL, argued that Bia Tosha’s concerns would not be materially affected by the deal.
Diageo’s lawyer, Njoroge Regeru, described the application as a “collateral attack” aimed at pressuring stakeholders, warning that granting such orders could set a dangerous precedent for interfering with legitimate business deals.
Senior Counsel Githu Muigai, representing Cogno Ventures Limited, agreed with the respondents, cautioning that issuing prohibitive orders at this stage would amount to prejudging the case before a full hearing.
Justice Bahati Mwamuye declined to grant interim relief, directing all parties to appear on April 9, 2026, for a full ruling. The decision keeps the multi-billion shilling deal on track, emphasizing the judiciary’s balancing act between protecting individual legal rights and maintaining stability in Kenya’s commercial environment.