Diageo has agreed to sell its 100% shareholding in Diageo Kenya to Japanese listed global beverage firm, Asahi, for $2.3bn.

The drinks firm, which owns brands including Guinness, Captain Morgan and Smirnoff, said the deal includes its 65% shareholding in East African Breweries (EABL) and its 53.7% shareholding in Kenyan spirits business, UDVK.

Diageo has committed to enter into long-term licensing agreements with EABL to secure the continued production and distribution of Guinness, local spirits and ready-to-drink brands.

Asahi’s acquisition is the first time that a major Japanese brewing business has made an investment of this size in and African alcohol beverage business.

Interim chief executive officer at Diageo, Nik Jhangiani, said: "We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward."

President and group CEO at Asahi, Atsushi Katsuki, added: "This business is a high-quality, leading company in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares.

"Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies."

The deal is set to complete in the second half of 2026.

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