Uganda has secured a major legal victory after a London-based international arbitration tribunal dismissed a $2.3 billion claim filed by investors in Rift Valley Railways (RVR), marking the end of a five-year legal battle over a collapsed railway concession.
The tribunal, constituted under the UNCITRAL Arbitration Rules (2010) and seated in London, issued its final ruling on July 22, 2025.
The case had been filed in April 2020 by RVR Investments (Pty) Ltd and KU Railways Holdings Limited, alleging Uganda breached contractual obligations tied to the 2006 railway concession agreement.
Under the deal, RVR was granted operational control of the Meter Gauge Railway (MGR) linking Uganda and Kenya. The investors argued that Uganda undermined their operations by failing to harmonize standards and later shifting focus to the newer Standard Gauge Railway (SGR), which they claimed rendered the MGR obsolete.
RVR accused the Ugandan government of deception, claiming it continued to solicit investment from the company while allegedly planning to abandon the meter gauge system. They also argued that Uganda’s actions amounted to a repudiation of the agreement.
In its defense, Uganda maintained that RVR consistently failed to meet operational targets, lacked sufficient recapitalization, and made minimal progress in modernizing infrastructure. The government said these failings severely hampered rail services and justified the termination of the concession.
According to Uganda’s Ministry of Justice, the tribunal found no merit in the claims of deceit or bad faith and ruled entirely in Uganda’s favor, awarding no compensation to RVR.
The Attorney General, Kiryowa Kiwanuka, welcomed the ruling, describing it as a testament to Uganda’s commitment to fair business practices and responsible governance. “We are pleased that the facts have prevailed. This decision reaffirms that Uganda acted within its legal rights and with the best interests of the country at heart,” he said.
The verdict is a relief for the government, potentially saving taxpayers from footing a multibillion-dollar compensation bill. It also clears the path for Uganda to further invest in modern rail infrastructure without legacy legal constraints from the now-defunct concession.
