EABL Announces CFO Departure

East African Breweries Limited (EABL) announced today that Chief Financial Officer and Executive Director Risper Ohaga will leave the company on June 30, 2026. Ohaga will pursue career opportunities outside the brewer. She has held both roles during her tenure at EABL.

EABL is Kenya's largest listed company by market capitalization. The brewer operates across East Africa. Its brands include Tusker, Guinness, and Senator Keg. The company reported revenue of KSh 91.2 billion ($700 million) in fiscal year 2023. This represented 26% growth from the previous year.

Why It Matters

Ohaga's departure marks a significant leadership change at East Africa's dominant brewer. She joined EABL in 2018 as CFO. The company appointed her as Executive Director in 2020. During her tenure, EABL navigated pandemic disruptions and regional economic challenges.

Her exit creates uncertainty during a period of strategic importance. EABL faces rising input costs and competitive pressures. The company's stock (NSE: EABL) closed at KSh 165 ($1.27) on January 14. This represents a 12% decline from its 52-week high of KSh 187 ($1.44).

CFO transitions often impact investor confidence. The finance chief oversees financial strategy, reporting, and capital allocation. EABL will need to maintain stability during this leadership change. The company has not yet announced a successor.

Financial Performance Context

EABL's financial results provide important context for this leadership change. The company reported profit after tax of KSh 15.6 billion ($120 million) in fiscal 2023. This marked a 21% increase from the previous year. Net finance costs rose to KSh 4.3 billion ($33 million) due to higher interest rates.

The brewer faces several financial challenges. Global commodity prices remain volatile. The Kenyan shilling has depreciated against major currencies. EABL's debt stood at KSh 33.8 billion ($260 million) as of June 2023. The company must manage this debt amid rising borrowing costs.

EABL operates in a regulated industry with specific tax considerations. The company pays excise duties to the Kenya Revenue Authority. These duties represent a significant portion of government revenue. Any changes to tax policy could impact EABL's financial performance.

What Businesses Should Watch

Companies should monitor several developments following this announcement. First, watch for EABL's succession plan. The board will likely appoint an interim CFO if no permanent replacement is named by June. The selection process will reveal the company's strategic priorities.

Second, observe EABL's financial guidance. The company typically provides annual forecasts in its quarterly reports. Any changes to these forecasts could signal shifting business conditions. The next earnings report is scheduled for February 2025.

Third, track competitor responses. Rivals like Keroche Breweries and imported brands may see opportunity during this transition. The alcoholic beverages market in Kenya grew 8% in 2023 according to the Kenya National Bureau of Statistics. Competition for market share could intensify.

Fourth, monitor regulatory developments. The Alcoholic Drinks Control Act requires compliance from all brewers. The National Authority for the Campaign Against Alcohol and Drug Abuse oversees enforcement. Changes in regulation could affect industry profitability.

Regional Market Implications

EABL's leadership changes have implications beyond Kenya. The company operates in Uganda through Uganda Breweries Limited. It also has presence in Tanzania through Serengeti Breweries Limited. These subsidiaries contribute approximately 35% of EABL's total revenue.

The East African Community common market facilitates cross-border trade. EABL benefits from reduced tariffs within the bloc. However, non-tariff barriers sometimes disrupt supply chains. The company must navigate these regional complexities during leadership transitions.

Other major Kenyan companies have experienced similar executive changes. Safaricom appointed a new CFO in 2023. Kenya Airways named a new finance director in 2022. These transitions occurred without major disruption to operations. EABL will aim for similar stability.

Looking Ahead

Ohaga will remain with EABL for more than two years. This extended timeline allows for orderly transition planning. The company can conduct a thorough search for her replacement. It can also ensure knowledge transfer between the outgoing and incoming CFO.

The board of directors, led by Chairman Martin Oduor-Otieno, will oversee the succession process. EABL's parent company, Diageo PLC, may provide input on the selection. Diageo holds a 50.03% stake in EABL. The global spirits giant has experience with executive transitions across its operations.

EABL faces both challenges and opportunities in the coming years. The company plans to expand its premium brand portfolio. It continues to invest in sustainable brewing practices. These initiatives require strong financial leadership. The next CFO will play a crucial role in executing this strategy.

Market participants will watch EABL's stock performance closely. The Nairobi Securities Exchange lists EABL shares under ticker EABL. Trading volume averages 200,000 shares daily. Price movements may reflect investor sentiment about the leadership change.

The alcoholic beverages sector contributes significantly to Kenya's economy. The Kenya Association of Manufacturers reports the industry employs over 100,000 people directly. It supports thousands more in distribution and retail. EABL's stability matters for broader economic performance.

Business leaders should note this development as part of Kenya's corporate landscape. Executive transitions are normal in maturing markets. They test corporate governance structures and succession planning processes. EABL's handling of this change will provide insights for other companies facing similar situations.