Ex-ALP director files ELRC suit alleging unlawful dismissal and breach of contract

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    A former senior executive at Africa Logistics Properties (ALP) has filed a lawsuit in Kenya’s Employment and Labour Relations Court (ELRC) claiming wrongful termination, discrimination, and breach of contract related to a long-term equity incentive plan.

    In the court documents, Mr. Asbury Maruza Chikwanha has sued companies linked to British aristocrat Charles George Barrington, Lord Tryon, who is the Chairman and Co-founder of ALP Management Kenya Limited (ALP) and its parent company, Africa Logistics Properties Holdings Limited (ALPH).

    Mr. Chikwanha claims he was recruited by ALP’s former CEO to head development operations in Kenya and the surrounding area. He initially turned down the position because of a much lower salary compared to his previous job at AMSCO. However, he later accepted after being promised inclusion in a long-term equity incentive plan connected to the industrial real estate portfolio he would oversee.

    In his witness statement, Mr. Chikwanha notes he accepted the offer based on the expectation that this equity participation or profit-sharing plan would provide a benefit of between US$1 million and US$2 million over five years, even with the lower base pay.

    The claimant, who holds dual citizenship in Zimbabwe and Australia, further claims he was removed as a director from nine subsidiaries within the ALP Group without proper procedure. Court filings show that ALPH’s shareholders include institutional investors such as Maris Capital, British International Investment (BII), formerly CDC Group Plc, and the International Finance Corporation (IFC). The filings do not suggest any wrongdoing by these investors.

    The case raises questions about corporate governance under the Companies Act, fair labor practices under Article 41 of the Constitution, adherence to the Employment Act, and allegations of discrimination and breach of contract.

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    According to the filings, Mr. Chikwanha disputes claims made to the Registrar of Companies regarding meetings that supposedly approved his removal as a director. He argues he was not informed about these meetings and that emails and letters were sent to addresses he could not access after his termination. He has raised a complaint with Kenyan authorities about the director removal process, which is part of ongoing legal proceedings and a police investigation.

    Mr. Chikwanha also questions the circumstances surrounding his termination. He alleges that ALP issued a redundancy notice in April 2023, later withdrew it while mentioning an upcoming interaction with a potential investor, and then sent a second redundancy notice in August 2023. This was followed by a termination letter in September 2023. He argues that the required procedures for redundancy were not followed and that he did not receive details about the long-term incentive plan despite asking multiple times.

    Furthermore, Mr. Chikwanha claims his termination was discriminatory. He states that better terms were offered to other senior executives, whom he describes as being of Caucasian ethnicity. He also alleges that his final payments were withheld and only partially paid six months later. He claims the cancellation of his work permit was rushed within four days, without him receiving the proper immigration directives, which impacted his legal status in Kenya.

    ALP denies all accusations. In its defense, the company insists that Mr. Chikwanha’s written employment contract takes precedence over any previous statements and that no binding agreement existed regarding the profit-sharing or equity incentive plan. The company argues that his redundancy was due to a restructuring aimed at increasing shareholder value and was done in line with contractual and legal requirements. ALP also challenges Mr. Chikwanha’s claims about shareholding and the events surrounding his termination.

    Court documents reveal that Africa Logistics Properties Holdings Limited, where Mr. Chikwanha is described as a minority shareholder, has obtained regulatory approval from the Capital Markets Authority to create the ALP Industrial Real Estate Investment Trust (ALP REIT). This REIT is expected to be launched with existing assets provided by the promoter in exchange for units and/or cash. Some of the assets in the portfolio, including developments at Tatu City and Tilisi, were developed while Mr. Chikwanha was employed from 2017 to 2023.

    The case is still pending before the Employment and Labour Relations Court. All claims are disputed and await judicial review.

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