The Government of Uganda has emerged victorious in a high-stakes international arbitration case after a London-based tribunal dismissed all claims brought against it by investors in Rift Valley Railways (RVR), who were seeking over Shs 8.7 trillion (approximately USD 2.3 billion) in compensation.
In a final ruling delivered on July 22, 2025, the tribunal found no breach of contract by Uganda in its railway concession agreements with RVR Investments (Pty) Ltd and KU Railways Holdings Limited. The panel concluded that Uganda had acted lawfully and transparently in its dealings.
The arbitration, filed on April 2, 2020, under the UNCITRAL Arbitration Rules, stemmed from allegations that Uganda and Kenya undermined the old Meter Gauge Railway (MGR) concessions in favor of the newer Standard Gauge Railway (SGR) development. The investors argued that this shift led to significant financial harm and misled RVR into continued investments.
However, following a hearing in London in March 2024, the tribunal rejected all claims. It determined that the concession’s termination was due to RVR’s own operational failures — including mismanagement, underperformance, and consistent failure to meet freight and maintenance obligations.
In a significant counter-decision, the tribunal ordered RVR to pay Uganda Shs 13.8 billion (approx. USD 3.67 million) in legal fees and Shs 980 million (approx. GBP 200,369) in arbitration costs.
Uganda was represented by the Attorney General’s Chambers in collaboration with international law firm Curtis, Mallet-Prevost, Colt & Mosle LLP and local firm K&K Advocates.
In a statement, the Ministry of Justice and Constitutional Affairs welcomed the decision, calling it a reaffirmation of Uganda’s commitment to lawful and transparent investment processes.
“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 said.
