Japanese brewer Asahi to acquire the top beer brand in East Africa

Photo source: Tusker Beer

When Kenyans hit the bar after work, they usually ask for a Tusker. The legendary lager is East Africa’s largest selling and best-known beer brand. More than 70 million litres of Tusker is guzzled every year in Kenya alone, accounting for over 30% of the Kenyan beer market. Its black elephant logo is a ubiquitous feature of the local consumer landscape, appearing on everything from billboards to tourist merchandise. The beer was first brewed in 1922, but it was only christened 'Tusker' in 1923, after co-founder George Hurst was killed by an elephant during a hunting expedition. His brother Charles chose the name in his memory.

Now, this century-old institution is set to move into Japanese hands. Asahi, the Tokyo-based drinks giant, has agreed to a US$2.3bn deal to acquire a 65% stake in Tusker’s parent company, East African Breweries Limited (EABL) - the regional subsidiary of the British liquor distributor Diageo.

EABL manufactures and distributes a range of beer and spirits brands. It is the region's largest drinks company, holding an approximately 80% share of the Kenyan alcohol market, alongside operations in Tanzania and Uganda. The transaction, which is expected to close in the second half of 2026, values EABL at US$4.8bn.

Asahi will acquire Diageo’s stake in EABL, a sale that sees Diageo divest its last direct holding in an African brewer. Diageo has pledged to sell non-core assets to reduce its debt. The company previously exited businesses in Ethiopia and Cameroon in 2022, Nigeria in 2024, and Ghana in 2025.

Upon taking control, the Japanese company plans to retain EABL’s domestic brands while introducing its own global portfolio to East African consumers. It is also anticipated that EABL will also secure long-term licences to distribute Diageo’s international brands, ensuring staples like Guinness, Johnnie Walker, and Smirnoff Ice remain on local shelves.

Asahi intends to maintain EABL’s listing on the Nairobi Securities Exchange, alongside its cross-listings in Uganda and Tanzania. This investment is part of a steady rise in Japanese corporate activity in Africa. Major players that have expanded their footprint include automakers Toyota and Isuzu, financial groups SMBC and MUFG, as well as air-conditioner manufacturer Daikin and IT giant NEC Corporation. The number of Japanese enterprises on the continent nearly doubled between 2013 and 2024, rising from 277 to 535.

A 2024 survey of Japanese-affiliated companies operating on the continent found that long-term market potential is the primary allure for Japanese businesses in Africa. The African beer market is estimated to be worth at least US$44 billion. Asahi has pinned its hopes on the East Africa’s long-term economic growth and population expansion.

When asked which industries in Africa offered the greatest promise, nearly half of respondents cited resources and energy. Food, electric vehicles, and smart agriculture also ranked highly. Kenya was considered the most promising country, followed by South Africa, Nigeria, Egypt, and Côte d’Ivoire.

 

References

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'Beer in Kenya', Wikipedia, 29 August 2025

'Evolution of Japanese economic interest in Africa', NTU-SBF Centre for African Studies, 22 September 2025

'Notice regarding the acquisition of shares in Diageo plc’s businesses in East Africa', Asahi Group Holdings, 17 December 2025

'Diageo sells East Africa beer stake to Asahi for $2.3 billion', Bloomberg, 17 December 2025

'Diageo enters into agreement to sell its shareholding in East African Breweries plc to Asahi Group Holdings, Ltd', Diageo, 17 December 2025

'Diageo to sell Kenyan drinks business to Japan’s Asahi in $2.3bn deal', Financial Times, 17 December 2025

'Diageo to sell East African Breweries stake to Asahi for $2.3 billion', Reuters, 17 December 2025

'Diageo to exit East African Breweries in $2.3bn deal with Japan’s Asahi', The Africa Report, 17 December 2025