The Rwandan government has initiated international arbitration against the United Kingdom, claiming it is owed £100 million following the cancellation of an asylum deal by Prime Minister Sir Keir Starmer.
Rwanda argues that the UK breached the terms of the Migration and Economic Development Partnership, signed in 2022 under the previous Conservative government, which involved sending some asylum seekers who arrived illegally in Britain to the East African nation.
In a statement, Rwanda’s government cited the UK’s “intransigence” on the issues, prompting the pursuit of claims through arbitration. The claims include the UK’s public disclosure of the agreement’s financial terms, failure to pay £100 million (£50 million each for the 2025-26 and 2026-27 financial years), and refusal to resettle vulnerable refugees already hosted in Rwanda.
A UK Home Office spokesperson responded: “The previous government’s Rwanda policy wasted vast sums of taxpayer time and money. We will robustly defend our position to protect British taxpayers.”
The deal, which included a break clause allowing termination with written notice, saw the UK spend approximately £700 million, including £290 million paid to Rwanda. Only four volunteers were relocated to Rwanda before Labour, after winning the 2024 general election, declared the plan “dead and buried.”
Rwanda’s statement noted that in November 2024, the UK requested to forgo the two £50 million payments due in April 2025 and April 2026. Rwanda was willing to accept this if the treaty was terminated and new financial terms negotiated, but discussions did not occur, leaving the amounts due.
The statement added that the UK has no intention of making further payments or honoring commitments to resettle refugees, leading to unsuccessful attempts to resolve the matter. The UK notified Rwanda of termination after receiving the arbitration notice in November 2024, with the treaty’s end effective on March 16, 2026.
The dispute will be referred to the Permanent Court of Arbitration (PCA) in The Hague, Netherlands, as stipulated in the treaty. The PCA can issue binding rulings, though cases may take years to resolve.
Conservative shadow home secretary Chris Philp criticized the action as a “catastrophic consequence” of Labour’s decision, stating it exposes British taxpayers to a huge bill due to “weakness and incompetence.”
The UK government has indicated it is exploring options to recoup funds, but Rwanda maintains it has “no obligation” to refund any payments.