According to a verdict issued by the COMESA Competition Commission, the fine is a settlement for concerns related to territorial restrictions, single branding, and resale price maintenance. The Commission launched a probe into Diageo’s operations following allegations of market allocation and anti-competitive practices in the Common Market on 21 June 2021
By The Weekly Vision Investigations Desk
British multinational beverage manufacturer Diageo, which owns a 65% stake in East African Breweries Ltd (EABL), has been found guilty of engaging in anti-competitive practices within COMESA member countries, including Uganda. Diageo will now have to pay KSh 97 million (US$750,000) as a fine.
According to a verdict issued by the COMESA Competition Commission, the fine is a settlement for concerns related to territorial restrictions, single branding, and resale price maintenance. The Commission launched a probe into Diageo’s operations following allegations of market allocation and anti-competitive practices in the Common Market on 21 June 2021.
Apart from owning EABL, the largest beverage maker in the region, Diageo maintains a strong presence in Uganda and Tanzania, and it also exports beer and spirits to South Sudan, Rwanda, and Burundi. The inquiry, initiated under Article 21 of the COMESA Competition Regulations, focused on Diageo’s distribution agreements in several member states, including Kenya, Uganda, Eswatini, Ethiopia, Mauritius, Rwanda, Seychelles, Zambia, and Zimbabwe.
“Extensive engagement with Diageo culminated in a commitment agreement endorsed by the Committee Responsible for Initial Determinations on 23 September 2025. Under the agreement, Diageo terminated certain distribution arrangements in Eswatini and Zambia and amended its Uganda contracts to eliminate anti-competitive clauses,” the Commission said.
While welcoming the corrective measures, the Commission added that it would continue to monitor compliance to safeguard fair competition across the Common Market. Diageo manufactures more than 200 brands sold in nearly 180 countries, including premium drinks such as Guinness, Johnnie Walker, Baileys, Crown Royal, and Smirnoff.
In the region, other leading brands include Tusker, Pilsner, White Cap, Serengeti, Black & White, Bell, and Bulleit Bourbon, as well as the non-alcoholic drink Alvaro. In Kenya, apart from dominating the market, EABL has previously engaged in turf wars with Keroche Breweries, notably over the reuse of bottles.
