Law
Uganda Wins $2Bn Railway Dispute Against RVR At London Tribunal
The Government of Uganda has secured a decisive legal victory in a high-stakes international arbitration case involving a $2.3 billion claim by investors in Rift Valley Railways (RVR), following a Final Award issued by a London-based arbitration tribunal on July 22, 2025.
The tribunal dismissed all claims brought against Uganda by RVR Investments (Pty) Ltd and KU Railways Holdings Limited, the investors behind the now-defunct concession for the Meter Gauge Railway (MGR) system in Uganda and Kenya.
The arbitration, initiated on April 2, 2020, was conducted under the UNCITRAL Arbitration Rules (2010) and heard in March 2024 before a three-member panel seated in London.
RVR had accused both the Republic of Uganda and the Republic of Kenya of breaching concession agreements by failing to harmonize railway operations and policies. The investors claimed that the development of the Standard Gauge Railway (SGR) undermined their investment in the MGR system. They alleged the governments had concealed their intention to abandon the MGR while encouraging RVR to continue investing, amounting to deceit and inducement.
However, after a thorough review of the evidence, the tribunal rejected all of RVR’s claims. It specifically found that Uganda had not breached its obligations under the harmonization agreement, and that the termination of the Uganda Concession Agreement was justified due to RVR’s own operational failures.
“Uganda consistently maintained that it was not in breach of its contractual obligations,” the Ministry of Justice and Constitutional Affairs said in an official statement. “RVR’s mismanagement, underperformance, and failure to meet agreed freight volume targets and maintenance commitments led to the concession’s termination.”
In addition to clearing Uganda of liability, the tribunal ordered RVR to pay the Ugandan government over $3.6 million (USD 3,668,519.25) in legal costs and £200,369.11 in arbitration fees.
The ruling affirms Uganda’s legal and policy stance on defending national infrastructure assets and upholding transparent investment frameworks.
“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 by the Attorney General’s Chambers, along with legal counsel from international law firm Curtis, Mallet-Prevost, Colt & Mosle LLP, and local firm K&K Advocates.
The ruling brings closure to a long-standing dispute stemming from the collapse of the MGR concession, once seen as a flagship public-private partnership meant to revitalize East Africa’s railway transport sector.
The Ministry reaffirmed Uganda’s commitment to fair and transparent investment partnerships and the responsible management of public assets.
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