The launch of a multi-billion shilling investment vehicle has been marred by a fierce legal showdown. ALPH, the promoter of a $45 million (Sh5.8 billion) Industrial Real Estate Investment Trust (REIT), has been dragged to court following the acrimonious ouster of a key director.

This lawsuit threatens to dampen investor confidence just as the firm seeks to capitalize on Kenya’s growing logistics sector. The dispute exposes deep fissures within the company’s governance structure at a time when stability is paramount for the newly authorised REIT. The Capital Markets Authority (CMA), which greenlit the restricted offer in December 2025, will be watching closely as the courtroom drama unfolds.

The Governance Crisis

The conflict centers on the procedural legitimacy of the director’s removal. Filings at the High Court indicate that the ousted official alleges a breach of shareholder agreements and a lack of due process. Such boardroom wars are often bellwethers for deeper operational disagreements, raising questions about the strategic direction of the heavy-hitting real estate firm.

• The REIT: Structured as a restricted offer for professional investors, the Sh5.8 billion fund targets the lucrative industrial warehousing market.
• The Impact: Legal wrangles can delay capital deployment and spook the institutional investors—pension funds and insurers—that the REIT is targeting.

A Sector Under Scrutiny

The real estate sector in Nairobi has struggled with governance issues in the past, and ALPH’s travails serve as a cautionary tale. "Investors buy trust as much as they buy assets," noted a market analyst. If the court issues an injunction, the firm’s ambitious rollout could be frozen in its tracks.

As the case proceeds, the industry awaits a ruling that could redefine the rules of engagement for corporate governance in Kenya’s capital markets. For ALPH, the priority must now shift from expansion to damage control.