East African Breweries Limited (EABL) is making headlines in Kenya due to its parent company, Diageo, considering a potential $2 billion exit from the region.
Additionally, the Capital Markets Authority has suspended EABL’s trading on the Nairobi Securities Exchange over an ethanol scandal.
A Senate petition has further accused EABL of tax evasion, fraud, and coercing shareholders into selling their shares unfairly.
See also: Kenya and Uganda Take Major Step in Regional Cooperation: 8 Key Agreements Signed.
EABL faces growing scrutiny amid allegations of manipulating product formulations to avoid higher taxes, infringing on minority shareholder rights, and orchestrating a flawed share acquisition process.
Investigations have been demanded by the Senate, with pressure mounting on regulators like the CMA and KRA to act swiftly.
The scandal has sparked national debate on corporate accountability, foreign ownership, and the future of Kenya’s largest beverage manufacturer.
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