The Kenyan government, under President William Ruto’s leadership, has won a major legal battle involving Ksh260 billion at the London Court of International Arbitration.
The case had been filed by Rift Valley Railways (RVR), which accused Kenya and Uganda of unlawfully ending a railway construction and operation contract before its expiry.
The dispute dates back to 2020, when RVR took both governments to court after they cancelled a 25-year concession agreement that allowed the company to run freight and passenger trains between the two countries.
The agreement was meant to improve rail transport across Kenya and Uganda. However, in 2017, both countries pulled the plug on the deal, citing RVR’s failure to meet important contract terms—especially delays in paying concession fees and failure to raise enough funding for the railway’s operations.
RVR had claimed that the termination was unfair and in breach of the Railway Concessional Agreement. As a result, the company went on to sue the two governments, seeking compensation of over Ksh300 billion (about $2 billion) for alleged losses caused by the abrupt cancellation.
In response, legal teams representing Kenya and Uganda pushed back strongly. They argued that RVR was in clear violation of its obligations and that the governments were justified in ending the contract. The defense team from Kenya included prominent lawyers such as former Attorney General Prof.
Githu Muigai, Senior Counsel Wambui Muigai, Dennis Nkarichia, Nimo Adan, and others like Shadrack Mose, Njeri Wachira, Allan Githaiga, Charles Wamwayi, Sheila Mammet, Victoria Munyi, Anne Mulama, and Elizabeth Wamocho.
After more than five years of intense legal proceedings, the London Court of International Arbitration finally issued its ruling on Thursday, July 24. The court threw out RVR’s case and ruled in favor of the Kenyan and Ugandan governments.
The decision not only dismissed RVR’s claims but also ordered the company to cover the legal costs incurred by the respondents.
This ruling is a major win for the government, which now avoids paying out hundreds of billions of shillings in taxpayer money, and also helps restore confidence in the oversight of major infrastructure projects like regional railway lines.
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