Bia Tosha’s Bid to Block Diageo Deal Hits Legal Hurdle

Efforts by distributor Bia Tosha to halt the high-stakes Asahi-Diageo transaction have suffered a blow after the High Court declined to grant interim orders stopping the deal. In Wednesday’s proceedings, Justice Bahati Mwamuye held back from issuing conservatory orders, indicating that the application raised complex legal and commercial questions that require full hearing before any determination is made. The move by Bia Tosha is part of a broader dispute with Kenya Breweries Limited (KBL), East African Breweries Limited (EABL), Diageo and United Distillers Vintners (UDV), with the distributor arguing that the transaction could weaken its position in ongoing claims. But the respondents mounted a strong defense, dismissing the application as an attempt to stall a major corporate deal rather than address the core distributorship dispute. Senior Counsel George Oraro, representing EABL, told the court that the transaction does not affect Bia Tosha’s claims or any potential financial remedies. Diageo’s lawyer, Njoroge Regeru, went further, arguing that the application was strategically designed to pressure parties involved in the USD 2.3 billion (about Sh300 billion) transaction, rather than seek genuine legal redress. Senior Counsel Githu Muigai, appearing for Cogno Ventures Limited, also faulted the timing of the application, warning that granting the orders sought would effectively pre-judge the matter before all evidence is presented. The court’s decision leaves the transaction on course for now, even as the legal contest continues. A ruling on the application is set for April 9, 2026, in what could shape the direction of the dispute and the limits of court intervention in major business deals.