NATIONAL
A London based Arbitration Tribunal has dismissed a case brought against the government of Uganda by Rift Valley Railways Investors and KU Railways investors.
The two companies were initially contracted by Uganda and Kenya to run the Meter Gauge Railway (MGR) Line which the two governments terminated in favour of Standard Gauge Railway Line.
Enraged with the termination, the two companies ran to the London Arbitration Tribunal on 2nd April, 2020 demanding over 2.3 Billion U.S Dollars in compensation alleging breach of Agreements by the Ugandan government.
They accused the two East African countries of deceiving them into investing in the Meter Gauge Railway (MGR) Line despite an alleged hidden intention to retire the MGR in favor of the SGR.
However, the three member Panel on 22nd July, 2025 dismissed the claims noting that Uganda terminated the concession depending on RVR’s own shortcomings.
Uganda successfully argued that RVR failed to meet agreed freight volumes targets, and maintenance commitments.
The Tribunal has also ordered RVR to pay Uganda USD 3, 668, 519 in legal costs and 200,369 pounds in Arbitrations Costs.
This Award justifies Uganda’s position that the termination of the Concession was lawful, justified and necessary to protect a critical national infrastructure asset.
