KAMPALA, UGANDA – July 25, 2025 – The Ministry of Justice and Constitutional Affairs today announced a decisive victory for Uganda in a major international arbitration case, with a London-based tribunal dismissing all claims brought against the Republic of Uganda by Rift Valley Railways (RVR) investors. The tribunal also ordered RVR to pay Uganda over $3.6 million in legal costs and approximately £200,000 in arbitration costs.
The arbitration, which commenced on April 2, 2020, under the UNCITRAL Arbitration Rules 2010, stemmed from the termination of the Rift Valley Railways (RVR) concession. RVR investors, including RVR Investments (Pty) Ltd (RVRI) and KU Railways Holdings Limited (KURH), had sought compensation in excess of $2.3 billion. They alleged that the development of the Standard Gauge Railway (SGR) and alleged inducements to disinvest in the Meter Gauge Railway (MGR) had adverse impacts on their operational standards.
Uganda consistently maintained that it was not in breach of its contractual obligations and that the concession termination was a result of RVR’s own shortcomings, including mismanagement, underperformance, and a failure to meet agreed freight volume targets and maintenance commitments.
After an extensive hearing and a comprehensive review of evidence presented by all parties, the tribunal found that Uganda was not in breach of its harmonisation obligations as alleged. Crucially, the tribunal concluded that Uganda’s termination of the concession agreement was lawful, justified, and necessary to protect a critical national infrastructure asset, citing a multitude of independent reasons based on RVR’s own shortcomings.
Uganda was represented in the arbitration by the Attorney General’s Chambers, Curtis, Mallet-Prevost, Colt & Mosle LLP, and K&K Advocates.
