The Departmental Committee on Finance and National Planning met has sought assurances that the proposed acquisition of East African Breweries PLC (EABL) by Japan's Asahi Group Holdings, will not undermine market competition or prejudice the interests of local farmers, distributors, employees, and consumers.

The Committee Members were speaking during an engagement with the Competition Authority of Kenya (CAK) on the matter on Friday August 7, 2026.

During the meeting, Members sought assurances that the transaction would not undermine market competition or prejudice the interests of local farmers, distributors, employees, and consumers.

The Committee Members led by the Chairpeson Hon. Kuria Kimani further questioned the Authority on the specific safeguards being instituted to protect stakeholders following the ownership transition.

"We must ensure that farmers, distributors and employees are not left vulnerable once this transaction is concluded. These protections must be backed by enforceable contractual commitments," Chairperson Hon. Kuria Kimani said.

Hon . Kuria also directed the Authority to submit a Kenya-specific valuation of the transaction and documentary evidence of the proposed stakeholder safeguards within seven days.

Responding to these concerns, CAK Director-General David Kemei assured Members that existing contracts with sorghum and millet farmers, distributors, and employees would remain binding and fully honoured, adding that the Authority will continuously monitor compliance with all merger conditions.

The lawmakers also sought clarification on measures to prevent smaller beverage manufacturers from being edged out of the retail market.

The Authority explained that it had proposed a key condition requiring the merged entity to reserve at least 20 per cent of shelf space in major retail outlets for competing brands to safeguard fair competition and consumer choice.

The Committee further inquired about the financial safeguards accompanying the transaction. 

In response, CAK informed Members that the merging parties would be required to establish a dedicated financial reserve equivalent to four per cent of the total transaction value to cover third-party liabilities and legal claims arising after the merger's completion.

The meeting also reviewed ongoing enforcement actions involving EABL and deliberated on proposed amendments to the Competition Act aimed at strengthening Kenya's competition framework while promoting innovation, investment, and fair market practices.