By Jackson OKOTH

Tusker Lager lovers are holding their empty glasses, wondering if their favourite sip will be poured the next time they drop at the local.

This is if UK-based Diageo Plc, majority owner and the financial muscle behind East African Breweries Limited(EABL) makes good its threat to divest from Kenya and the East African beer market.

 

Murmurs within the corporate circles whisper that Diageo Plc could sell off its 65% stake in EABL Group as part of its worldwide US$ 500 Million cost-cutting program.

 

The global brewer has been fighting off effects of stiff US tariffs and slowdown in demand for alcohol drinks across the world.

 

In Kenya, EABL has been complaining of a choking tax regime, matters now made even more distasteful by a recent move by authorities to further prohibit the sale and consumption of alcohol, including raising the minimum age limit for alcohol consumers to 21 years from 18 years.

 

At the London bourse, Diageo shares have been suffering sharp price declines, which declined by 24% over the past year.

 

Diageo has yet to confirm it is selling off its stake in EABL. However, analysts said Diageo’s Kenyan brewing business, East African Breweries Limited (EABL), could be a candidate for sale.

 

EABL remains Diageo’s family jewel still stored in Africa after it cut loose from all other unprofitable ventures on the continent

The global brewer has already offloaded its stake in several African brewing operations as part of its move to shield its pockets from currency-volatile African markets.

Diageo says its cost-cutting drive will involve adopting a more agile global operating model that is powered by its digital capabilities.

Tusker remains one of the most enduring brands and popular alcoholic beverages in Eastern Africa.

With the expected exit of Diageo, Tusker could join a growing list of popular consumer brands of yesteryear that have since disappeared from the shelves and counters.

EABL’s financial results for the full-year ended 30^th June 2025 shows that the brewer’s net profit was up 12% to KSh 12.2 billion compared to KSh 10.9 billion in 2024. Net sales increased to KSh 128.8 billion in 2025 from KSh 124.1 million, a 4% jump.

EABL’s pre-tax profit hit KSh 19.3 billion in 2025 from KSh 16.8 billion in 2024 while Earnings per Share, an indicator of a firm’s profitability was up 16% from KSh 10.30 in 2024 to KSh 11

Tusker lager has an alcohol content of 4.2% by volume, 4.2 calories by volume, 110 per 12FL.OZ Fat and Carbohydrates of 6.6 per 12 FL. OZ Brewed using Kenya’s finest ingredients.

Tusker is as Kenyan as it can get. It is a gold liquid that embodies what makes it truly unique. Every bottle has carefully selected ingredients that revel in the magic that makes them right for each other oozing great heritage that dates back over 100yrs ago.

Crowned by refined refreshment, the taste of this beer has never changed over the years, refreshing, and with a taste that is perfectly balanced. It is available in a 500ml amber-colored bottle, a 500ml Can, and 30/50-liter keg.

 

Tusker lager was first brewed in 1922 with the first order made at the then Exchange Bar, at the Stanley Hotel.

 

EABL’s margins have been steadily declining in recent years following heavy taxation and excessive regulation on the business.

 

As much as EABL has passed on these tax implications to the final consumer, sales volumes in Kenya have been declining.

 

The brewer has argued that Consumers move to cheaper beers and their illicit counterparts to escape the tax which poses a threat to volume growth for the brewer.

Weaker economic trends in Kenya and low incomes has pushed many alcohol consumers from beers to more affordable spirits or illicit brews.

 

The flagship Tusker brand is slowly losing its appeal as continued consumption of spirits become entrenched as the favourite for the more vibrant youthful drinkers.

 

Figures indicate that mainstream spirits growth has consistently outperformed the beer category.

 

Analysts expect a diminished per capita alcohol consumption due to slower growth in consumer disposable income on the back of inflationary pressures and heavy indirect taxes.

 

Consumption in the upper income bracket remains stuck on local and international premium brands.