The High Court has dismissed attempts to remove lawyers representing both sides in a legal dispute linked to Diageo’s planned Sh303 billion sale of its 65 percent stake in East African Breweries Plc (EABL), allowing the case to proceed without changes to legal representation.
In one ruling, the court declined to strike out documents filed by advocate Kibe Mungai, despite finding that he practised for more than two months without a valid practising certificate.
Justice Francis Gikonyo ruled that although the lawyer breached the Advocates Act by practising between January 1 and March 10, 2026, the lapse did not invalidate pleadings, affidavits or court appearances made during that period. However, the judge held that the advocate cannot recover legal fees for work undertaken while unlicensed.
The court also rejected applications by Diageo and Kenya Breweries Limited (KBL) seeking to strike out the documents filed by the advocate, prevent him from appearing in the matter and cite him for contempt.
Justice Gikonyo noted that the Advocates Act protects the validity of legal documents prepared by advocates who lack a current practising certificate, adding that any misconduct should attract sanctions against the lawyer rather than deny litigants access to justice.
In a separate ruling, the judge dismissed an application by Jilk Construction Ltd seeking to disqualify law firm Mohammed Muigai LLP from representing EABL over an alleged conflict of interest.
Jilk argued that the firm had previously represented it in arbitration proceedings arising from refurbishment works at Kenya Breweries’ Kisumu brewery, giving it access to confidential information that could be used against the contractor.
The court found no evidence that confidential information had been misused or that Jilk would suffer actual prejudice. Justice Gikonyo held that claims of conflict of interest must be supported by proof of genuine harm before a party can be prevented from retaining its preferred legal counsel.
The rulings allow the broader litigation surrounding Diageo’s planned exit from Kenya to continue. The British drinks company intends to sell its controlling stake in EABL together with its 53.68 percent shareholding in UDV Kenya to Japan’s Asahi Group Holdings in transactions valued at approximately Sh387 billion.
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Diageo expects to complete the transactions before the end of the year, with the Kenya Revenue Authority (KRA) projected to collect about Sh42 billion in capital gains tax.
Jilk Construction is pursuing claims worth about Sh3.4 billion linked to refurbishment contracts awarded by Kenya Breweries between 2017 and 2019. The contractor argues that the proposed share sale should not proceed until its arbitration, constitutional and commercial disputes have been determined.
The court also dismissed KBL’s application to cite Jilk for contempt over letters the contractor sent to the Competition Authority of Kenya and the Director of Public Prosecutions (DPP), ruling that the correspondence served separate legal purposes and did not amount to an abuse of court process.
Justice Gikonyo further declined to suspend related criminal proceedings or lift conservatory orders preventing publication of an arbitral award arising from the Kisumu brewery dispute, allowing the parallel legal processes to continue as Diageo moves ahead with its planned divestment.
