Shares of East African Breweries Limited (EABL), Kenya’s largest beer producer, surged to their highest level in nearly a decade on Thursday, according to a BusinessDay analysis.
The rally follows Diageo’s announcement yesterday that it will sell its 65 percent stake in EABL to Japan’s Asahi Group Holdings in a landmark transaction that reshapes ownership of East Africa’s largest brewing group.
Real-time trading data from the African Exchange shows that EABL shares on the Nairobi Securities Exchange (NSE) rose by 19.3 percent to KES 299.7 ($2.0) on Thursday from KES 251.3 ($1.7) the previous session.
The last time the stock traded near this level was June 13, 2016, when it closed at KES 300 ($2.0).
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“EABL began the year by gaining 70.8 percent on that price valuation, ranking it 18th on the NSE in terms of year-to-date performance,” the African Exchange said. “Shareholders can be optimistic about EABL, knowing the stock has accrued 28 percent over the past four-week period alone — the second best on the NSE.”
Over the past three months, EABL ranked as the 19th most traded stock on the NSE.
On Wednesday, the NSE halted trading in EABL shares for the remainder of the day following a cautionary announcement related to Asahi’s acquisition plans.
“The halt follows the release of a cautionary announcement by the issuer during trading hours, coupled with the prior circulation of market-sensitive information. These measures have been taken to promote orderly trading and ensure equitable access to information for all market participants,” the Exchange said.
Trading resumed the following day.
The transaction marks the largest-ever entry by a Japanese brewer into Africa’s alcoholic beverages market, highlighting growing foreign interest in the region’s consumer sector.
As part of the deal, Diageo will exit East Africa entirely, selling its full ownership of Diageo Kenya Limited, which holds the EABL stake, as well as its 53.68 percent stake in UDV Kenya Limited, a Kenyan spirits producer and importer.
The sale aligns with Diageo’s broader strategy of offloading African assets—following exits and stake sales in Nigeria, Ghana, Cameroon, Ethiopia, and Seychelles—as the British multinational streamlines operations amid a wider corporate turnaround.
Estimated net proceeds after tax and transaction costs are expected to total $2.3 billion, implying an enterprise value of $4.8 billion for 100 percent of EABL and a multiple of 17 times adjusted EBITDA. The transaction is expected to reduce Diageo’s leverage by approximately 0.25x.
“The acquisition of EABL represents the first time a major Japanese brewing business has made an investment of this size in an African alcohol beverage business,” the company said. “Asahi is a strong, responsible, and experienced steward for the next phase of growth for EABL.”
The deal also signals a strategic shift by Diageo away from direct asset ownership in East Africa while marking a historic entry into the African market for Asahi.
Subject to regulatory approvals, completion is expected in the second half of 2026. EABL will remain listed on the NSE, as well as the stock exchanges in Uganda and Tanzania.
Founded more than a century ago, EABL operates across Kenya, Uganda, and Tanzania. Under Diageo, the brewer delivered a strong growth track record, supported by modern production facilities, an experienced management team, and deep relationships across its core markets.
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Adriano Joshua, a Kenya-based financial economist, said on LinkedIn that Diageo’s primary financial motivation is deleveraging as the company pivots to a more capital-light model in East Africa.
“By selling physical assets and distribution infrastructure while retaining long-term licensing agreements, Diageo will continue to earn high-margin royalty income from brands such as Guinness, Smirnoff, and Captain Morgan, without the operational risks or balance-sheet burden of owning breweries,” Joshua said.
“The transaction also represents a major capital deployment into Africa for Asahi.”