Bia Tosha Distributors Limited has formally withdrawn the most significant elements of its lawsuit against East African Breweries PLC (EABL) and Diageo in a major legal retreat that clears the way for the proposed $2.3 billion Diageo-Asahi transaction.
During proceedings at the High Court on Thursday, 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 all supporting expert reports and affidavits.
The presiding judge subsequently marked the 2026 petition as withdrawn and ordered the accompanying documents expunged from the court record, effectively removing the most contentious aspects of the dispute and paving the way for an expedited hearing process.
Distributor Abandons Bid to Block Diageo Share Sale
The withdrawn petition had formed the foundation of Bia Tosha’s attempt to connect a long-running distribution dispute with Diageo’s planned sale of its 65 per cent stake in EABL to Asahi Group Holdings.
Bia Tosha had sought to use the amended filings to block the transaction, arguing that the share sale should not proceed while the legal dispute remained unresolved.
However, the proposed transaction involves a change in majority shareholding rather than a change in the corporate entity itself.
Thursday’s withdrawal follows an earlier setback for the distributor after the High Court on April 9, 2026, dismissed its application seeking conservatory orders to suspend the deal pending the determination of the case.
By voluntarily withdrawing the 2026 pleadings, Bia Tosha has now effectively removed its attempt to halt the Diageo-Asahi share sale from the Constitutional Court’s agenda.
Decade-Old Distribution Dispute Remains
With the 2026 amendments struck out, the case now reverts to the “Amended Petition” filed on June 20, 2016.
What remains before the court is the original dispute concerning the termination of exclusive distribution routes in Nairobi and a claim for the refund of approximately KSh 38.3 million allegedly paid as goodwill.
The court will now focus exclusively on the historical commercial and distributorship grievances, leaving aside the broader and more complex corporate acquisition issues introduced in the withdrawn amendments.
EABL and Diageo Push for Conclusion of Long-Running Case
Legal teams representing East African Breweries PLC and Diageo, led by Senior Counsels Kamau Karori and George Oraro, welcomed the withdrawal and expressed their clients’ desire to conclude what has become one of the oldest pending matters in the Constitutional Division.
To accelerate the case, the court issued strict procedural timelines aimed at ensuring the dispute proceeds without further delays.
Court Issues New Timelines Ahead of July Hearing
Under the new directions:
- EABL, Diageo, and other interested parties have 14 days to file revised responses limited strictly to the June 20, 2016, petition.
- Bia Tosha will then have 10 days to submit any supplementary replies.
- Several pending interlocutory applications, including contempt of court motions, will remain suspended to avoid interfering with the substantive hearing.
- The issue of costs related to the withdrawn petition will be determined in the final judgment.
The matter is scheduled for mention on July 2, 2026, when the court will confirm compliance with the timelines and determine whether witness cross-examination will be required or whether the case will proceed solely through written affidavits.
The substantive hearing of the 2016 petition is set for July 20, 2026.