East African Breweries has delivered its strongest financial year in recent memory, with profit after tax climbing 49.4 percent to Kshs 18.2 billion on the back of double digit revenue growth and a sharp cut in finance costs.
Net revenue rose 13.3 percent to Kshs 146.0 billion for the year ended June 30, 2026, while earnings before interest and taxes excluding foreign exchange effects grew 33.9 percent to Kshs 33.3 billion.
The board responded with a total dividend of Kshs 12.70 per share, up 58.8 percent, funded by a final payout of Kshs 8.70 that follows the interim dividend already declared during the year.
Where the growth came from
Group chairman Martin Oduor Otieno said the operating environment across East Africa held broadly stable through the year, with inflation, interest rates and currencies largely unchanged. Consumer discretionary spending still came under pressure, and EABL saw some downtrading as shoppers traded down to cheaper options, but volume growth carried net sales higher regardless.
Group managing director Jane Karuku called it the business’s strongest performance in recent years across every metric, crediting disciplined execution, portfolio strength and a sharper read on the consumer. Country and category growth in both volume and revenue, paired with tighter productivity and cash delivery, drove the result, and continued investment in brands and innovation kept momentum going through the year.
Lower finance costs added further lift to the bottom line. Net finance costs fell 24.7 percent to Kshs 4.4 billion after EABL cut total debt by Kshs 5.8 billion during the year, easing interest costs at the same time revenue was climbing.
The year in numbers
| Metric | FY2026 | YoY change |
|---|---|---|
| Net revenue | Kshs 146.0B | +13.3% |
| Operating profit (ex FX) | Kshs 33.3B | +33.9% |
| FX loss | Kshs 1.2B | vs Kshs 313M gain in FY2025 |
| Net finance costs | Kshs 4.4B | -24.7% |
| Profit after tax | Kshs 18.2B | +49.4% |
| Earnings per share | Kshs 18.99 | +58.6% |
| Total dividend per share | Kshs 12.70 | +58.8% |
| Cash and cash equivalents | Kshs 18.0B | +41.1% |
Cash generated from operations rose 17.7 percent to Kshs 42.0 billion, and year end cash climbed 41.1 percent to Kshs 18.0 billion, helped along by improved working capital management. That cash buildup, combined with the debt reduction, gives EABL more room to fund both the dividend and future investment without leaning as heavily on borrowed money.
A foreign exchange swing worth watching
Not every line moved in EABL’s favour. The business booked a foreign exchange loss of Kshs 1.2 billion for the year, reversing a Kshs 313 million gain the year before. Currency swings across the multiple East African markets EABL operates in remain one of the harder variables for the business to control, and this year’s reversal shows how quickly that line can move even when the core business is performing well.
The ownership question hanging over the year
EABL’s results land against the backdrop of one of Kenya’s largest pending corporate transactions. Diageo agreed in December 2025 to sell its 65 percent stake in EABL, along with a 53.68 percent holding in UDV Kenya, to Japan’s Asahi Group Holdings in a deal worth roughly $2.3 billion, about Kshs 297 billion.
EABL’s own statement confirms unconditional approvals are already in hand from capital markets regulators in Uganda, Tanzania and Kenya, leaving clearance from the Competition Authority of Kenya as the final regulatory hurdle.
That approval has proven harder to secure than the others. A Machakos High Court injunction issued in June 2026 temporarily froze the Competition Authority’s ability to rule on the deal, adding to a string of court challenges from parties including beer distributor Bia Tosha and construction firm JILK, both of which have tried to link older commercial disputes to the share sale.
Kenyan courts have dismissed each attempt so far, and the National Treasury is reportedly counting on roughly Kshs 42 billion in capital gains tax once the transaction closes. EABL has been careful to stress that the sale sits strictly between shareholders and does not involve the company directly, even as the outcome will determine who controls its largest shareholding once the dust settles.
What comes next
Management says the priorities ahead stay consistent with what delivered this year’s results: understanding the consumer, investing smartly, driving productivity and advancing sustainability commitments, alongside continued focus on developing its people.
With volume growth, cost discipline and a lighter debt load all pulling in the same direction this year, EABL heads into FY2027 with real momentum, even as the Diageo Asahi ownership change plays out in the background.
