Nairobi — The Board of Directors of East African Breweries Limited (EABL) has recommended an interim dividend of Sh4 per share to shareholders for the half-year ending December 31, 2025, up from Sh2.5 paid during a similar period in 2024.

The increase follows a 38 percent rise in net profit to Sh11.2 billion.

EABL Board Chairman Martin Oduor-Otieno attributed the improved performance to a stable operating environment in East Africa, lower inflationary pressures, declining interest rates, and currency stabilisation across the region.

"However, the period was not without its challenges. Household disposable income remained under pressure, while elevated input and operating costs continued to weigh on margins across the sector," Oduor said.

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Net sales grew by 11 percent to Sh75.5 billion, supported by the introduction of new products into the market, while total debt declined by Sh2.2 billion, contributing to lower finance costs.

The profit growth comes as Japanese brewing giant Asahi Group Holdings has agreed to acquire a 65 percent stake in EABL from Diageo for Sh296.6 billion.

Under the deal, Asahi will take control of EABL's businesses in Kenya, Uganda and Tanzania.

Earlier this month, the High Court allowed regulatory approval processes for the Diageo-Asahi transaction to proceed, even as it issued a temporary order restraining the final stages of the deal.

The court ruled that statutory and regulatory processes linked to the transaction should continue without interruption, citing the significance of the deal and declining to halt ongoing approvals.

The case stems from an application filed by Bia Tosha Distributors Limited. The matter has since been referred to the Presiding Judge for reallocation and will be mentioned on January 20 for further directions.