The East Africa Breweries Ltd Group Managing Director, today appeared before the Senate Standing Committee on Trade, Industrialization and Tourism to respond to questions on the Petition regarding alleged fraudulent acquisition of shareholding at the East African Breweries Ltd. 

The Committee Chaired by Kajiado Senator Lenku Ole Kanar Seki had requested the Managing Director to apprise the Committee on the strategic business impact and benefits of the acquisition of an additional 15 per cent shares in the East African Breweries Limited (EABL) by Diageo PlC; whether the acquisition by Diageo PLC is a consolidation for the alleged transfer to and eventual takeover by Heineken or Castemil group; why EABL was undertaking considerable downsizing despite consistent posting of marginal profits; and lastly provide justification for the policy of the disposing off huge company assets and how local shareholders have benefited from these sales.

The MD in her response informed the Committee that Diageo Kenya acquired an additional 15% shareholding in EABL in 2023, by way of a Public Tender Offer to all EABL shareholders, a transaction which was approved by the Capital Markets Authority and the relevant regulators. 

 She further explained to the Committee that as part of its disclosures in the 2023 Public Tender Offer, Diageo Kenya disclosed that it had made no agreement or arrangement to sell EABL shares to any other person. 

Responding to the question of why EABL was undertaking considerable downsizing despite consistent posting of marginal profits, the Group MD told Senators that EABL had not engaged in downsizing initiatives in the past decade. She emphasized that EABL is on a substantial growth trajectory, a trend reflected in augmentation of company's total assets value from Kes. 14 Billion in 2000 to Kes 110 Billion in 2022 further translating to EABL's high contribution to Government Revenue and shareholders returns in terms of profits and dividends. 

In her final response on the justification for the policy of the disposing off huge company assets and how local shareholders have benefited from these sales, Jane Karuku the MD submitted to the Committee that EABL has not sold any strategic, critical or performing business assets as alleged by the Petitioner. 

The Committee in conclusion asked the EABL Managing Director to provide a detailed report on various issues of raised during the meeting. 

Members of the Committee present were Sen. Esther Okenyuri- the Committee Vice Chairperson, Sen. Jackson Mandago, Sen. Andrew Omtatah, Sen. Karungo Thangwa and Sen. Betty Montet who joined the meeting online.