NAIROBI, Kenya — The landscape of Kenya’s corporate sector is undergoing a seismic shift as the long-standing “British Empire” of industry continues to retreat, making way for a new era of Eastern and Continental influence.
The latest and perhaps most symbolic departure came last week with the announcement that London-listed multinational Diageo Plc intends to sell its majority stake in East African Breweries (EABL). The proposed $3 billion (Sh386.8 billion) deal will see Diageo’s 65% ownership transferred to the Japanese beverage giant Asahi Holdings, marking the end of an era for one of Kenya’s most iconic corporate relationships.
A Mass Migration of Capital
The Diageo exit is not an isolated event but rather the climax of a decade-long trend. From banking and telecommunications to energy and agriculture, the “Made in England” hallmark is rapidly being replaced by interests from Japan, China, India, and South Africa.
Key departures and downsizings in recent years include:
- Vodafone: Currently offloading its remaining 5% stake in Safaricom to its South African subsidiary, Vodacom, for $500 million.
- Barclays: The century-old brand transitioned to Absa Kenya in 2020 following a strategic pivot by the UK parent company.
- De La Rue: The security printer exited the Kenyan market in 2023 after losing its long-held currency printing contract to a German firm.
- GlaxoSmithKline (GSK): Shifted from a local manufacturing powerhouse to a third-party distribution model in 2022.
- James Finlay & Lipton: Significant tea assets have been acquired by Sri Lankan-based Browns Investments.
The Geopolitical Pivot
Economists point to the early 2000s as the turning point, specifically the administration of President Mwai Kibaki, which began aggressively courting Chinese investment. This policy deepened under Uhuru Kenyatta, as British firms lost lucrative infrastructure and supply contracts to Asian competitors.
“The change is best illustrated by the ceremonial presidential car,” notes Prof. X.N. Iraki, an economics lecturer at the University of Nairobi. “The Land Rover that once carried the Head of State has been replaced by a Toyota. It is the natural decline of an old influence.”
Trade by the Numbers: The UK’s Waning Clout
The shift is starkly visible in trade statistics, where the UK has plummeted from Kenya’s primary trade partner to 16th place.
| Metric | 1999 (UK) | 2024 (UK) | 2024 (China) |
| Share of Kenya’s Imports | 11.8% | 1.65% | Leading Partner |
| Import Value | Sh23.1 Billion | Sh44.7 Billion | Sh576 Billion |
While British firms once claimed more than half of all dividends paid by companies listed on the Nairobi Securities Exchange (NSE), that grip is loosening. Once the Diageo deal closes, the number of UK-majority-owned firms on the bourse will dwindle to just six, leaving Standard Chartered and BAT Kenya as the last major bastions of British equity in Nairobi.
What This Means for Kenya
For Kenya, the exit of UK firms represents a diversification of its economic partners. However, it also signals a transition in how profit is repatriated. While the British “Old Guard” focused on manufacturing and finance, the new wave of investors from the East and South Africa is reshaping the competitive landscape with aggressive expansion and different capital structures.
As Asahi Holdings prepares to take the reins at EABL, the message is clear: the sun has set on the era of British corporate hegemony in East Africa, replaced by a more fragmented, globalized, and competitive market.
