Kenya has secured a major legal victory in a multi-billion-dollar international arbitration case after the London Court of International Arbitration (LCIA) dismissed a $2 billion (Sh258.26billlion) claim lodged against the country.
The case, filed in 2020 by KU Railways Holdings Limited (formerly Sheltam Rail Company PTY) and Rift Valley Railways Investments (PTY) Limited, alleged that the Kenyan and Ugandan governments had breached key terms of the Interface Agreement and Railways Concession Agreement.
These agreements had governed the defunct Rift Valley Railways (RVR) project—a once-promising freight and passenger transport venture jointly run by the two countries.
In a ruling issued this week, the LCIA dismissed the claim in its entirety and ordered the claimants to cover the legal costs incurred by Kenya. The decision spares the country from what could have been a devastating financial blow to the public purse.
“This outcome not only upholds the integrity of Kenya's legal and commercial commitments but also protects the Kenyan taxpayer from a staggering liability,” said Solicitor General Shadrack Mose, who led the Kenyan legal team in the high-stakes case.The victory was the result of a coordinated effort by the Office of the Attorney General, Kenya Railways, and a legal consortium made up of both local and international experts.
The core team from the State Law Office included:
- Ms. Njeri Wachira, Senior Deputy Solicitor General
- Mr. Allan Githaiga, Deputy Chief State Counsel
- Mr. Charles Wamwayi, Ms. Sheila Mammet, Ms. Victoria Munyi, and Ms. Anne Mulama, all Principal State Counsel
- Ms. Elizabeth Wamocho, Senior State Counsel
Kenya Railways was represented by Stanley Gitari and Christine Macharia, while the country’s external legal representation was led by Prof. Githu Muigai, SC, supported by Wambui Muigai, Dennis Nkarichia, and Nimo B. Adan from Mohammed Muigai LLP.
The international team also included Michael Sullivan KC of One Essex Court and Prof. Albert Mumma, SC of Prof. Albert Mumma & Company Advocates.
HKA Global served as the government’s financial and technical expert consultants during the proceedings.
The Attorney General’s Office praised Dorcas Oduor, for her leadership and guidance throughout the four-year arbitration process.
Legal experts say the ruling is not only a legal win but also a reaffirmation of Kenya’s commitment to upholding contractual integrity and safeguarding public resources in the face of complex international litigation.
The Rift Valley Railways project, once considered a cornerstone for modernizing East Africa’s rail infrastructure, collapsed amid operational and financial difficulties, triggering legal fallout that culminated in this landmark arbitration.
The decision is final and binding, bringing to a close one of the most high-profile international legal battles Kenya has faced in recent years.