Kenyan rivals hopeful as regulator imposes conditions on Asahi-Diageo beer deal

Kenya's competition regulator has placed two key conditions on Asahi Group's $2.3 billion bid for Diageo's East African Breweries, aiming to curb the latter's market dominance. Retail outlets must allocate refrigeration capacity to brands other than those owned by EABL and Asahi, and $115 million must be set aside to settle disputes with third parties. The move is welcomed by global and local competitors, including Heineken, Keroche Breweries and African Originals, who view it as a potential opening to challenge EABL's grip on distribution.

EABL, which denies allegations of anti-competitive conduct, has rejected the stipulations and is pursuing a reversal of the regulator's decision. Diageo and Asahi say they are discussing the issues with the authority, while a court order keeps the transaction on hold pending further legal challenges. The outcome could reshape Kenya's beer market, which remains EABL's largest stronghold in the region.