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HomeLaw & CrimeZimbabwean Businessman Loses Bid to Regain Directorship in Kenyan Shareholding Dispute

Zimbabwean Businessman Loses Bid to Regain Directorship in Kenyan Shareholding Dispute

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NAIROBI, Kenya — A Zimbabwean businessman has suffered a major setback in his shareholding battle in Kenya after the High Court in Nairobi dismissed his petition seeking to overturn his removal as a director of a property investment and logistics group.

The court ruled that the judicial review division could not grant the relief sought by Asbury Maruza Chikwanha, who had challenged his dismissal from ALP Management Kenya and its affiliated companies. Chikwanha was removed from his position as development director in September 2023, a decision he argued was unlawful and procedurally flawed.

Chikwanha had sued the Business Registration Services (BRS), ALP Management Kenya, and several associated entities, claiming that his removal was part of a broader attempt to edge him out of the company and undermine his shareholding rights. He asked the court to quash the decision and reinstate him as director, arguing that the company acted in bad faith.

However, the High Court held that matters relating to directorship disputes and shareholding rights should be pursued through alternative civil procedures and not judicial review. The judge noted that judicial review is limited to evaluating whether a public body acted unlawfully or exceeded its powers—standards that did not apply to internal corporate decisions taken by private entities.

Legal analysts say the ruling signals the court’s reluctance to intervene in corporate restructuring disputes unless clear violations of statutory processes are demonstrated.

Sources close to the matter indicate that the dispute arose after disagreements over project direction, financing structures, and control of strategic assets within the logistics and property development group. The conflict escalated into a legal confrontation as each side sought to assert dominance over the firm’s management and long-term strategy.

Chikwanha is now expected to pursue other legal avenues, including a potential civil suit, to continue his challenge.

The ruling reinforces Kenya’s judicial position that boardroom and shareholder battles must be addressed through the Companies Act mechanisms, arbitration, or commercial litigation rather than through judicial review courts.

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