A London arbitration panel ruled against Rift Valley Railways consortium after the company challenged Uganda's decision to end their rail management contract. The tribunal rejected RVR Investments and KU Railways Holdings Limited's demand for $2.3 billion compensation on July 22. RVR must pay Uganda $3.6 million for legal expenses plus additional arbitration fees. The railway operators had controlled the 25-year concession agreement until Uganda terminated the deal in 2017. Both Uganda and Kenya blamed the consortium for missing freight targets and failing to upgrade railway infrastructure.
RVR launched arbitration proceedings in April 2020 under UNCITRAL rules after losing operational control. The company alleged breach of agreements and claimed Uganda favored Standard Gauge Railway development over the existing meter gauge system. Hearings took place in March 2024 before the three-member panel reached their verdict. The tribunal determined that RVR's poor management and underperformance justified Uganda's termination decision. Uganda's legal team successfully defended the government's actions throughout the international dispute process.
RVR launched arbitration proceedings in April 2020 under UNCITRAL rules after losing operational control. The company alleged breach of agreements and claimed Uganda favored Standard Gauge Railway development over the existing meter gauge system. Hearings took place in March 2024 before the three-member panel reached their verdict. The tribunal determined that RVR's poor management and underperformance justified Uganda's termination decision. Uganda's legal team successfully defended the government's actions throughout the international dispute process.
