Government Wins Landmark Ksh260 Billion Rail Dispute in London Court
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President William Ruto’s administration has scored a major legal victory after the London Court of International Arbitration dismissed a high-stakes Ksh260 billion compensation case filed by Rift Valley Railways (RVR) against Kenya and Uganda.
The case, which has dragged on since 2020, was triggered by the termination of RVR’s 25-year concession agreement to operate a regional railway network. The governments of Kenya and Uganda pulled the plug on the deal in 2017, citing RVR’s failure to meet key targets—including non-payment of concession fees and inability to raise critical financing.
RVR had accused the two nations of breaching contract terms and sought a staggering Ksh300 billion ($2 billion) in damages.
However, the London-based tribunal sided with the Ruto administration, ruling on Thursday, July 24, that the termination was lawful and justified. The court not only dismissed the petition but also awarded costs in favour of Kenya and Uganda, dealing a final blow to the company’s claims.
The legal team defending Kenya included former Attorney General Prof. Githu Muigai, Senior Counsel Wambui Muigai, and a powerhouse group of lawyers such as Dennis Nkarichia, Nimo Adan, Shadrack Mose, and others.
Legal experts say this win protects billions in public funds and underscores the government’s commitment to enforcing accountability in mega infrastructure deals.
“This ruling sends a strong message—Kenya will not be bullied into paying for failed contracts,” a senior official commented.
The verdict is being hailed as a diplomatic and legal triumph, sparking renewed calls for due diligence and performance-based partnerships in public-private projects.
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