The Capital Markets Authority (CMA) has suspended the trading of East African Breweries Limited (EABL) shares on the Nairobi Securities Exchange (NSE) with immediate effect, citing serious regulatory breaches and an impending exit from the Kenyan market.
In a statement, CMA said the suspension follows disclosures of significant irregularities in the sourcing and distribution of industrial ethanol used in the production of alcoholic beverages under the EABL portfolio.
Investigations by the Kenya Bureau of Standards (KEBS) and the Directorate of Criminal Investigations (DCI) have reportedly linked EABL to the circulation of counterfeit or substandard alcohol in several regional markets.
The regulator further revealed that EABL’s board — including senior executives from its parent company Diageo Plc — has formally notified authorities of a strategic decision to cease primary operations in Kenya.
This move, the board said, is driven by steep revenue losses and reputational damage resulting from the circulation of falsified EABL products and alleged internal oversight failures.
CMA said the trading suspension, effected under Section 11(3) of the Capital Markets Act, is aimed at protecting investor interests, preserving market integrity, and enabling a transparent audit of EABL’s disclosures and governance structures.
“All investors and stakeholders are advised to rely only on official communications,” the Authority said, adding that further updates will be issued after a comprehensive review of the situation.
