My Kenya did something similar- he started to lose all his branches and looked pretty bad. I thought it was dead until I found the loose branches were attaching to my live rock and growing. Talked to my LFS and they said that's how they multiply. The "mother" still doesn't look too great, but it still has one large branch attached to it. I gathered up all the "babies" i could find and threw them in a cup with some rubble. Hopefully I'll have some more Kenya's now.
I hope that's what yours is doing- how long has it been like that?