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Bia Tosha Drops KSh45 Billion Claim in Diageo-Asahi Deal Case
Beer distributor Bia Tosha Distributors Limited has withdrawn key parts of its lawsuit against East African Breweries PLC and Diageo, effectively clearing a major legal obstacle facing the planned $2.3 billion Diageo-Asahi transaction.
The withdrawal, made before the High Court today, marks a significant legal climbdown by the distributor after months of attempting to challenge the deal.
Distributor Abandons Expanded Petition
Senior Counsel Kiragu Kimani, representing Bia Tosha, informed the court that the company would abandon its “Further Amended Petition” dated January 30, 2026, together with supporting expert reports and affidavits.
The court subsequently marked the amended petition as withdrawn and ordered all related documents removed from the record.
The withdrawn filing formed the core of Bia Tosha’s attempt to block Diageo’s planned sale of its 65 percent stake in EABL to Japan’s Asahi Group Holdings.
The distributor had also pursued a massive KSh45 billion financial claim tied to the dispute.
Bia Tosha Drops KSh45 Billion Claim in Diageo-Asahi Deal Case
Focus Returns to Original 2016 Dispute
With the 2026 amendments removed, the case now reverts to the original petition filed in June 2016.
The remaining dispute centers on the termination of exclusive distribution routes in Nairobi and Bia Tosha’s claim for the refund of about KSh38.3 million paid as goodwill.
The court will now focus strictly on those historical distributorship grievances instead of the broader corporate transaction issues introduced in the later filings.
The withdrawal also follows an earlier setback for Bia Tosha after the High Court, in April 2026, dismissed its application seeking conservatory orders to stop the Diageo-Asahi deal.
Court Sets Fast-Track Hearing Timelines
Lawyers representing EABL and Diageo, including Senior Counsels Kamau Karori and George Oraro, welcomed the move and pushed for a faster conclusion to the long-running case.
The court directed EABL, Diageo, and other parties to file revised responses within 14 days, limited only to the original 2016 petition.
Bia Tosha will then have 10 days to submit supplementary replies.
The court also suspended several pending applications, including contempt motions, to avoid delaying the substantive hearing.
A mention has been scheduled for July 2, 2026, while the main hearing will proceed on July 20, 2026.
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