KAMPALA, Uganda — Uganda has secured a landmark victory in a protracted arbitration dispute in London, saving the East African nation more than 7 trillion shillings (approximately $1.9 billion USD). The ruling by a London-based international arbitration tribunal dismissed claims brought by investors of Rift Valley Railways (RVR) who had sought about $2.3 billion (roughly 8.2 trillion shillings) in compensation from both Kenya and Uganda.
The final award, issued July 22, clears Uganda of wrongdoing in the arbitration initiated by RVR Investments (Pty) Ltd and KU Railways Holdings Limited, two companies associated with the former railway concessionaire. The dispute began in April 2020 under the UNCITRAL Arbitration Rules, with the tribunal seated in London.
At the heart of RVR’s claim were allegations that the Ugandan and Kenyan governments failed to harmonize operational standards across the railway network, that the development of the Standard Gauge Railway (SGR) negatively impacted their operations, and that there was a hidden intention to retire the Meter Gauge Railway (MGR) despite encouraging continued investment.
After extensive hearings in March 2024 and a comprehensive review of the evidence presented by all parties, the three-member tribunal rejected all claims against Uganda. It specifically found that Uganda had not breached its harmonization obligations, and that the termination of the Uganda Concession Agreement was for a multitude of independent reasons stemming from RVR’s own shortcomings.
In a significant win for Uganda, the tribunal ordered RVR to pay Uganda 3,668,519.25 British Pounds (approximately $4.7 million USD) in legal costs and an additional 200,369.11 British Pounds (approximately $256,000 USD) in arbitration costs. This amounts to roughly 14.1 billion shillings that RVR must pay to the Ugandan government.
The Ministry of Justice and Constitutional Affairs welcomed the tribunal’s decision. Officials emphasized that the award underscores Uganda’s consistent position that the termination of the concession was lawful, justified, and essential to protect a critical national infrastructure asset. They reaffirmed Uganda’s commitment to fair and transparent investment partnerships, highlighting the importance of responsible stewardship of public assets.
Uganda was represented in the arbitration by the Attorney General’s Chambers, alongside the international law firm Curtis, Mallet-Prevost, Colt & Mosle LLP, and local counsel K&K Advocates.
