Uganda triumphs in $2.3 billion Rift Valley Railway arbitration case
Rift Valley Railways train during the concession period. Photo: The Standard
In a significant legal victory for Uganda, a London-based international arbitration tribunal has dismissed all claims brought against the country by investors in Rift Valley Railways (RVR). The investors had sought more than $2.3 billion in compensation, accusing Uganda and Kenya of breaching agreements related to the management of the Meter Gauge Railway (MGR).
Tribunal rules in favour of Uganda
The tribunal issued its Final Award on July 22, 2025, following a hearing conducted in March 2024 under the UNCITRAL Arbitration Rules (2010). The arbitration had been initiated on April 2, 2020, by RVR Investments (Pty) Ltd (RVRI) and KU Railways Holdings Limited (KURH)—the ultimate concession holders in the regional railway project.
RVR accused the governments of Uganda and Kenya of failing to harmonize operational standards, undermining the concession through the development of the Standard Gauge Railway (SGR), and deceitfully inducing continued investment despite intentions to phase out the MGR.
Tribunal dismisses all claims
After a thorough review of evidence from all parties, the tribunal rejected all claims. It concluded that Uganda had not breached its contractual obligations and that the termination of the concession was justified.
Essentially, the tribunal found that Uganda’s actions were not the cause of the project’s failure. Instead, RVR’s own mismanagement, failure to meet freight volume targets, and neglect of maintenance commitments were cited as the primary reasons for the concession’s collapse.
Financial award in Uganda’s favour
In addition to dismissing the claims, the tribunal ordered RVR to pay Uganda $3,668,519.25 in legal costs and £200,369.11 in arbitration costs. This financial award reinforces Uganda’s stance that it acted lawfully and responsibly in terminating the concession.
Uganda reaffirms commitment to fair investment
Uganda’s Ministry of Justice welcomed the decision as a validation of its approach to infrastructure stewardship and legal integrity. The government emphasized that protecting national assets like the railway system is a priority and reaffirmed its commitment to fair, transparent investment partnerships.
“This award underscores Uganda’s firm position that the termination of the Concession was lawful, justified, and necessary to protect a critical national infrastructure asset,” the ministry stated.
Uganda was represented in the arbitration by the Attorney General’s Chambers, along with international law firm Curtis, Mallet-Prevost, Colt & Mosle LLP and local firm K&K Advocates.
