Kenya: Diageo reportedly launches review of majority stake in East African Breweries

British multinational alcoholic beverage company Diageo Plc has launched a review of its majority stake in listed brewer East African Breweries Ltd. (EABL), according to a report by Bloomberg.

Diageo holds a 65% stake in EABL, its largest brewing operation in Africa.

The company appointed Bank of America and Goldman Sachs to advise on the process, Bloomberg reports.

The review could lead to a full or partial sale of EABL’s beer business with analysts estimating the business could fetch up to US$2 billion(~KSh 258Billion).

The figure is significantly above EABL’s current US$1.2 billion(~KSh 155Billion) valuation on the Nairobi Securities Exchange.

Founded in 1922 as Kenya Breweries Ltd., EABL remains a dominant force in East Africa’s alcoholic beverages market. It operates in Kenya, Uganda, and Tanzania, and distributes to over 10 African countries. Its product lineup includes well-known brands such as Tusker, Bell Lager, Kenya Cane, and licensed Guinness.

This review aligns with Diageo’s push toward an asset-light model where the global conglomerate is looking to free up capital and boost growth after a volatile period.

According to sources familiar with the matter, potential buyers could include Heineken NV, Castel Group, and AB InBev. While no final decisions have been made, the move could significantly reshape East Africa’s beer industry.

Earlier this month, Diageo replaced CEO Debra Crew after a rocky two-year tenure. During her time, Diageo’s share price dropped by over 40%, growth targets were scrapped, and the company issued a profit warning. Broader trade tensions and inflationary pressures have added to the challenges.

Over the past few years, Diageo has exited several African markets. The company sold its interests in Guinness Ghana, Guinness Nigeria, Guinness Cameroon, Seychelles Breweries, and Meta Abo Brewery in Ethiopia. If completed, a sale of EABL would represent its most significant retreat from African brewing operations to date.

Given EABL’s scale and heritage, any potential sale would carry far-reaching implications for the region’s beverage sector.

Looking ahead, EABL is set to release its full-year financial results on Thursday, July 31, 2025. Investors will closely be watching the earnings to assess revenue, profitability, and future guidance. These results are expected to play a key role in shaping discussions around valuation and deal terms.

Ultimately, a successful sale could reshape the competitive landscape, attract regulatory scrutiny, and potentially unlock shareholder value.