The Managing Director of East Africa Breweries Limited (EABL), Ms. Jane Karuku, has firmly defended the company against allegations of fraudulent activities and oppression of minority shareholders.
Speaking before the Senate Committee on Tourism, Trade, and Industrialization, Ms. Karuku emphasized that the Companies Act explicitly prohibits the oppression of minority shareholders, ensuring their rights are protected.
The session, held at Parliament Buildings, was prompted by a petition from Mr. Rono Nicholas, who raised concerns about alleged irregularities at Diageo PLC and EABL.
Addressing the committee, Ms. Karuku clarified that neither the Capital Markets Authority (CMA) nor any employees have filed complaints against EABL regarding shareholder oppression.
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“”As of today’s date, the Capital Markets Authority (CMA) has never raised a minority or employee shareholder claim against EABL nor have any employees filed such claims. In addition, EABL has not faced accusations of oppression by its minority shareholders so it is surprising that EABL, or Diageo PLC as the acquiring shareholder is being accused of such irregular activities.” Ms. Karuku stated.
Ms. Karuku further elaborated on the acquisition process, noting that in 2023, Diageo Kenya increased its stake in EABL from 50.03% to 65% through a tender offer. The move received approvals from both the Capital Markets Authority (CMA) and the Fair Competition Commission (FCC) of Tanzania.
Highlighting EABL’s commitment to transparency and legal compliance, Ms. Karuku emphasized the company’s dedication to maintaining investor confidence as a publicly traded entity. She also detailed recent investments in the company, including significant capital allocations to various subsidiaries over the past five years.
Addressing tax matters, Ms. Karuku assured the committee that as of August 2024, EABL had no outstanding tax obligations to the Kenya Revenue Authority (KRA).
She emphasized that the company has been diligent in adhering to tax laws, ensuring all taxes are paid on time and that returns are submitted as required.
“The frequency of tax payments and submissions of tax returns varies depending on the type of tax, whether it’s corporate income tax, employment income tax, or other obligations,” Ms. Karuku explained.
The Senate Committee’s inquiry into the allegations continues, but Ms. Karuku’s testimony underscores EABL’s stance on legal compliance and shareholder equity.
