Kenya and Uganda have secured a major win in the London Court of International Arbitration, where a $2 billion claim brought by the now-defunct Rift Valley Railways consortium was fully rejected.
The claim was launched in 2020 by KU Railways Holdings and RVR Investments, arguing that the governments unlawfully terminated a 25‑year rail concession signed in 2006.
The tribunal found that the consortium failed to deliver on key contractual obligations.
This included missed freight targets, unpaid concession fees, and neglect of planned investments to rehabilitate tracks and upgrade locomotives.
In 2017, both governments ended the concession citing poor performance and unmet conditions.
The London tribunal dismissed the suit in full and ordered the claimant to cover Kenya’s legal costs.
Kenyan officials confirmed the ruling protects taxpayers from a heavy financial burden and strengthens trust in legal governance.
The failed effort to revive the concession included efforts by RVR to restructure the partnership and find new investment.
However, those efforts did not prevent termination, which was finalized by both Nairobi and Kampala in 2017 due to RVR’s consistent underperformance.
With the legal chapter closed, the two nations turn focus to securing new investment frameworks and more reliable public‑private infrastructure ventures.
This ruling closes a notable chapter in East African railway history and signals the importance of strong enforcement of performance standards and contractual accountability.