East African Breweries Limited (EABL), a cornerstone of Kenya’s beverage industry, is set to exit the Kenyan market following a shock announcement from its parent company, Diageo Plc, citing persistent financial losses.
The Capital Markets Authority (CMA) has informed investors that EABL shares will no longer trade on the Nairobi Securities Exchange (NSE), sending ripples through Kenya’s financial markets and sparking intense debate on social media about the implications for investors and the local economy.
Here’s the latest on EABL’s exit, Diageo’s decision, and what it means for stakeholders.
EABL, known for iconic brands like Tusker, Pilsner, and Guinness, has been a mainstay on the NSE, with Diageo holding a 65% stake after a Sh22.7 billion share purchase in 2023.
However, posts on X reveal mounting concerns over Diageo’s management, particularly after a counterfeit alcohol scandal that claimed 20 lives, prompting a U.S. ban on Kenyan alcohol exports under President Trump’s administration.
Diageo’s decision follows a reported cost-cutting strategy, with plans to offload assets worth Sh65 billion across Africa.
The company pointed to a challenging economic environment, including a 16.9% depreciation of the Kenyan shilling and rising competition from local players like Keroche Breweries.
EABL’s share price, which hit a 52-week high of Sh204 in October 2024, had slumped to Sh149 by March 2025, reflecting investor unease.
The CMA’s directive to halt EABL’s trading on the NSE, announced Wednesday, aims to protect investors amid the company’s restructuring, though details remain scarce.
The exit has raised alarms about job losses and economic fallout, with EABL employing thousands across Kenya, Uganda, and Tanzania.
Investors face uncertainty, with some, like a user who bought shares at Sh175, seeking advice on social media about potential buybacks at Sh190, though no official confirmation exists.
The CMA has urged shareholders to await further guidance, while analysts suggest diversifying into stable sectors like consumer staples, which show a projected 27.1% earnings growth.
As Kenya’s market grapples with foreign investor outflows—down 30.1% since March 2023—EABL’s exit underscores broader challenges for the NSE.
