JILK construction loses bid to halt Sh340bn EABL shares sale

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A construction company has suffered a major blow after the High Court has rejected its bid to halt the Sh340 billion sale of Diageo's controlling stake in East African Breweries PLC (EABL) to Japan's Asahi Group Holdings.

Justice Gregory Mutai of the Milimani Constitutional and Human Rights Division on Wednesday June 17,2026 dismissed JILK Construction Company's application for conservatory orders ruling that the firm's grievances had no bearing on the multibillion-shilling share transfer.

Although the court left room for the underlying constitutional petition to be heard later, Justice Mutai found no link between JILK's complaint and the transaction it sought to freeze.

"I share the same view as my brother Judge Bahati Mwamuye in the Bia Tosha matter, that no nexus has been shown between the impugned transaction and the petition now before the court," the judge ruled.

JILK's case traced back to a terminated 2017 Kisumu brewery construction contract, a disputed arbitration, and claims of workplace misconduct, with the firm leaning on the United Nations Guiding Principles on Business and Human Rights to argue the deal should be paused pending a human rights audit.

The court was not persuaded, pointing to the Supreme Court's reasoning in the Mitu-Bell case to hold that the UN principles amount to soft law without the binding force needed to stop a lawful commercial transaction.

The judge went further, framing the deal as a matter of national economic interest.

"In my view, public interest favors the conclusion of the transaction, as the transaction shall have a significant public finance impact," he said, with the deal expected to generate roughly Sh42 billion in Capital Gains Tax for the Exchequer.

JILK's case is one of several attempts to derail the acquisition this year.

Bia Tosha Distributors had an earlier injunction bid thrown out on similar grounds, and a separate case filed by activist lawyer Shane Ngechu is due for hearing next week.

EABL and Diageo's legal teams have spent much of the year contesting this string of suits, private prosecution attempts, and constitutional petitions.

The court decision now reinforces a judicial line against using unrelated commercial or contractual disputes to stall capital markets transactions, a practice some lawyers have described as "lawfare" against listed companies.

The court also moved to reassure investors that EABL and Kenya Breweries Limited will continue operating  normally and meeting their obligations once the deal closes.

With this hurdle cleared, the transaction now awaits only the Competition Authority of Kenya's final approval, after regulators in Uganda, Tanzania, and Kenya's own Capital Markets Authority had already signed off.