State to get Sh42bn from Diageo sale of EABL stake

Workers at the East African Breweries (EABL) microbrewery off Thika Road, Nairobi on January 26, 2024. 

Photo credit: Wilfred Nyangaresi | Nation Media Group

The Kenyan government is set for a major windfall in tax revenue from the sale of Diageo Plc’s 65 percent stake in East African Breweries Plc (EABL), underscoring the lucrative nature of mega corporate deals to the exchequer.

Diageo is selling its 65 percent stake in EABL to Asahi Group Holdings in a deal that will see the British multinational brewer pay an estimated Sh41.5 billion in capital gains tax (CGT) to the Kenya Revenue Authority (KRA), according to a source close to the transaction.

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