Kenya wins Sh258 billion arbitration claim filed by Rift Valley Railways concessionaire

The government has successfully defended an over Sh258 billion (over US$2 billion) international arbitration claim brought against it by KU Railways Holdings Limited and RVR Investments (PTY) Limited (RVR) before the London Court of International Arbitration (LCIA).

In the claim, which was lodged in 2020, the two companies accused the governments of Kenya and Uganda of breaching provisions of the Interface Agreement and the Railways Concession Agreement. These agreements related to the operation, construction, and management of the now-defunct Rift Valley Railways line, a joint freight and passenger transport project between the two nations under a 25-year deal.

“In a decisive ruling, the LCIA entirely dismissed the USD 2 billion claim, awarding costs in favour of the Republic of Kenya. This outcome not only upholds the integrity of Kenya’s legal and commercial commitments but also protects the Kenyan taxpayer from what would have been a staggering financial liability,” Solicitor General Shadrack Mose said in a statement.

 Mose led the defence and supported by a  legal team from the State Law Office, comprising Senior Deputy Solicitor General Njeri Wachira; Deputy Chief State Counsel Allan Githaiga; Principal State Counsels Charles Wamwayi, Sheila Mammet, Victoria Munyi and Anne Mulama; Senior State Counsel Elizabeth Wamocho.

Kenya Railways was represented by lawyers Stanley Gitari and Christine Macharia.

Former Attorney General Prof Githu Muigai led an external legal team as Lead Counsel that included lawyers Wambui Muigai, Dennis Nkarichia, and Nimo B. Adan – all from Mohammed Muigai LLP; Michael Sullivan KC of One Essex Court; and Senior Counsel Prof Albert Mumma of Prof Albert Mumma & Company Advocates.

Additionally, HKA Global served as Kenya’s financial and technical experts during the arbitration.

“We extend our sincere appreciation to the Honourable Attorney General, Dorcas A. Oduor, SC, OGW, EBS, for her steadfast guidance and invaluable support throughout the process,” Mose said.

“This win reaffirms Kenya’s resolve to uphold lawful governance, protect public resources, and maintain international credibility,” he added.

During the hearing, the Kenyan and Ugandan governments accused the two companies breaches of contract related to the concession, including insufficient investment, failure to meet freight targets, and non-payment of concession fees.