Justina Wamae Links Diageo Exit to High Costs, Counterfeits and Heavy Taxes

Former 2022 deputy presidential candidate Justina Wamae has weighed in on British multinational Diageo’s decision to exit Kenya’s alcohol manufacturing space, blaming harsh operating conditions that continue to burden local producers and investors.

In a social media post shared on Thursday, December 18, 2025, Wamae said Diageo’s decision reflects deeper structural problems in Kenya’s business environment. 

She pointed to rising production costs, widespread counterfeit products and heavy taxation as factors making it increasingly difficult for manufacturers to operate sustainably.

“Diageo exits Kenya — it shows we are not serious about building a Singapore-style economy,” Wamae wrote. 

“High cost of production, counterfeits and excessive taxes will stagnate everything.”
Diageo sells controlling stake in EABL

Her comments followed Diageo’s announcement that it had agreed to sell its majority shareholding in East African Breweries Limited (EABL) to Japan’s Asahi Group Holdings. 

Under the deal announced on December 17, Diageo will sell its 65 per cent stake in EABL for about $2.3 billion, equivalent to roughly Ksh 300 billion.

The transaction also includes Diageo’s controlling interest in UDV (Kenya) Limited, a spirits manufacturing subsidiary. 

The deal values EABL at approximately $4.8 billion, making it one of the largest corporate acquisitions in Kenya’s history.

Despite the ownership change, EABL will remain listed on the Nairobi Securities Exchange as well as stock markets in Uganda and Tanzania.

Founded in 1922, EABL is one of East Africa’s largest beverage manufacturers, producing and distributing beer, spirits and ready-to-drink products across the region. Its popular brands include Tusker, Senator, Serengeti, Kenya Cane and Chrome.

For the financial year ending June 2025, the company reported net sales of Ksh 128.8 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) of Ksh 33.3 billion. 

The brewer directly employs more than 1,500 people across East Africa, with thousands more relying on its value chain.

As part of the agreement, Asahi Group said it plans to work with existing management and staff to support long-term growth. 

Licensing arrangements will also allow EABL to continue producing and distributing Diageo-owned brands such as Guinness, Johnnie Walker and Smirnoff Ice within the region.

Diageo said the sale aligns with its global strategy of focusing on core markets while reducing debt and freeing up capital. 

The company stressed that it is not exiting East Africa entirely, as it will continue earning royalties through brand licensing agreements.

The transaction is expected to be completed in the second half of 2026, subject to approvals from competition authorities in Kenya, Uganda and Tanzania.

EABL has assured investors and the public that the sale will not affect its day-to-day operations, financial stability or obligations, including its Ksh 20 billion medium-term bond programme.
Industry pressures resurface

Wamae’s remarks have revived debate around long-standing challenges in Kenya’s alcohol and manufacturing sectors. 

Counterfeit and illicit alcohol continues to undercut legitimate producers, despite repeated crackdowns by authorities that have led to the seizure of fake products worth millions of shillings.

High excise taxes on alcoholic beverages have also been cited by industry players as a major concern, arguing that frequent tax increases push consumers toward cheaper, illegal alternatives while squeezing compliant manufacturers.