Kenya's competition regulator has proposed that East African Breweries Ltd (EABL.NR) set aside as much as 15 billion Kenyan shillings ($115 million) in reserve funds before approving Diageo's (DGE.L) sale of its majority stake in the brewer to Japan's Asahi Group Holdings (2502.T), Kenya's Business Daily newspaper reported on Monday.
The newspaper said the Competition Authority of Kenya wanted the reserve to cover potential liabilities and third-party claims linked to EABL, a condition that has stalled completion of the transaction.
Diageo said there was "no basis whatsoever for these proposed conditions".
"The supposed concerns are entirely unrelated to the transaction and their imposition would be unlawful. Diageo and Asahi are continuing to discuss this issue with the CAK," a Diageo spokesperson said.
The competition authority did not respond to requests for comment.
Diageo agreed in December 2025 to sell its 65% stake in EABL to Asahi for about $2.3 billion.
The transaction has faced several court challenges in Kenya, including a suit by distributor Bia Tosha that was dismissed in April, and a later case in which a minority shareholder temporarily secured an order halting the deal, prompting EABL to ask Kenya's chief justice in June to speed up related hearings.
($1 = 129.4000 Kenyan shillings)
