Kenya successfully defends Sh258.3bn international claim by KU Railways Holdings Limited » Capital News

NAIROBI, Kenya, Jul 25 – Kenya has successfully fended off a colossal international arbitration claim worth over Sh 258.3 billion (USD 2 billion), in a case filed by KU Railways Holdings Limited and RVR Investments at the London Court of International Arbitration (LCIA).

The Office of the Attorney General confirmed the development on Friday, noting that the entire claim was dismissed with costs awarded in Kenya’s favour.

The dispute revolved around the management and construction of the now-defunct Rift Valley Railways (RVR) concession, a joint freight and passenger rail project between Kenya and Uganda that was expected to modernize transport along the regional corridor.

“The USD $2 Billion Claim has been entirely dismissed with costs awarded in favour of the Respondents,” Solicitor General Shadrack Moses indicated in a statement. “This victory has saved the Republic of Kenya and by extension, the Kenyan taxpayer from incurring what would otherwise have been a significant financial burden.”

“This victory has saved the Republic of Kenya and by extension, the Kenyan taxpayer from incurring what would otherwise have been a significant financial burden,” he said.

The arbitration was filed in 2020 by KU Railways Holdings Ltd (formerly Sheltam Rail Company) and RVR Investments, alleging breaches by both Kenya and Uganda under the Interface and Railways Concession Agreements.

The Kenyan government’s legal defense was spearheaded by Solicitor General Shadrack Mose, supported by a team of lawyers from the State Law Office and Kenya Railways, with external counsel led by  Githu Muigai and UK-based advocate Michael Sullivan.