JILK Construction has filed an urgent application in the High Court seeking to restrain Diageo from selling its stake in East African Breweries Limited (EABL), arguing that the planned transaction could undermine the enforcement of a pending arbitral award worth Sh2.45 billion plus interest.
The Nairobi-based firm alleges that Diageo’s actions involve coordinated abuse of process, regulatory evasion, and serious employment law violations during the execution of the Kisumu Brewery project.
In its petition, JILK is asking the court to order a Sh3 billion security deposit, fast-track the matter to a determination by 30 April 2026, and grant interim relief to preserve the subject matter until judgment is delivered.
The move comes amid broader scrutiny of Diageo’s corporate governance and asset transactions, with the applicant warning that any sale of the stake could frustrate claims arising from long-standing contractual disputes.
JILK Construction has filed an urgent application seeking to restrain Diageo from disposing of Diageo’s stake in EABL, arguing that the sale would defeat enforcement of a pending arbitral award of about KES 2.45B plus interest:—The applicant alleges coordinated abuse of
Lawyers for JILK argued that the urgency of the application is justified by the risk that the EABL stake could be transferred or sold to third parties, potentially rendering any eventual court or arbitral decision unenforceable.
Diageo, which holds a controlling stake in EABL, has not yet publicly commented on the filing. The High Court is expected to review the application in the coming days.
This development adds another layer of complexity to Diageo’s ongoing operations in Kenya, coming at a time when the brewing giant is exploring strategic divestments and managing disputes with local contractors.
