Kenya has won a major legal battle in an international arbitration case, saving the country from a potential financial liability of 2 billion US dollars (approximately KSh 258 billion).
According to a statement released by the Office of the Attorney General and Department of Justice on Friday, July 25, the government successfully defended itself against the 2 billion US dollars’ claim filed by KU Railways Holdings Limited and Rift Valley Railways Investments (Pty) Limited (RVR) before the London Court of International Arbitration (LCIA).
The arbitration proceedings, which began in 2020, stemmed from allegations that the governments of Kenya and Uganda had breached the Interface Agreement and the Railways Concession Agreement.
These agreements pertained to the now-defunct Rift Valley Railways line, a joint passenger and freight project operated between the two countries.
In a decisive ruling, the LCIA dismissed the entire claim and awarded costs in favour of Kenya, marking a significant win for the country and protecting taxpayers from a massive payout.
The defense was led by Solicitor General Shadrack J. Mose, with legal support from senior officers in the State Law Office.
The Kenya Railways legal team, represented by Stanley Gitari and Christine Macharia, was also involved in the process, while Prof. Githu Muigai spearheaded the country’s external legal counsel.
HKA Global acted as the country’s financial and technical experts throughout the arbitration.
“We extend our sincere appreciation to the Honorable Attorney General, Dorcas A. Oduor, for her steadfast guidance and invaluable support throughout the process,” the statement read. “This win reaffirms Kenya's resolve to uphold lawful governance, protect public resources, and maintain international credibility.”
Once a key transport link between Kenya and Uganda, the Rift Valley Railways line suffered years of mismanagement and financial strain before finally collapsing.
A protracted legal fallout followed. The troubled concession drew the attention of regional authorities and international arbitrators, eventually becoming the center of a high-profile case before the London Court of International Arbitration.
