Rwanda fails to secure £100 million from UK in asylum deal dispute

An international arbitration tribunal has ruled that the United Kingdom does not have to pay Rwanda tens of millions of pounds claimed under a now-defunct asylum partnership, rejecting all of Kigali’s financial and treaty-breach claims stemming from the collapse of the controversial migration deal.

    The ruling, issued by a tribunal convened under the Permanent Court of Arbitration (PCA), was published Monday after being rendered on May 15. It marks the conclusion of a dispute that arose after Britain’s Labour government scrapped the Rwanda asylum scheme shortly after taking office in 2024.

    Rwanda had sought payment of £50 million for the second year of the agreement, an additional £50 million for the third year, or alternatively a prorated payment of £10.4 million, arguing that Britain remained bound by financial commitments made under the asylum partnership. Kigali also alleged that London violated provisions of the agreement relating to financial arrangements and broader cooperation obligations.

    In its award, the tribunal rejected Rwanda’s claims.

    “By these reasons, the Tribunal” rejected Rwanda’s demand for the Year 2 payment, unanimously dismissed its claim for Year 3 funding, and rejected allegations that Britain had violated Articles 18 and 19 of the agreement, according to the PCA’s official summary of the decision.

    The tribunal further ruled that each side should bear its own legal costs and that arbitration expenses would be shared equally between the two governments.

    According to court documents, the majority of the three-member panel found that Rwanda had agreed through diplomatic exchanges in November 2024 to forgo additional payments scheduled for April 2025 and April 2026, a finding central to the dismissal of Kigali’s financial claims.

    The tribunal was chaired by former International Court of Justice judge Peter Tomka, with arbitrators Mohamed Abdel Wahab of Egypt and Joan Donoghue of the United States. Abdel Wahab issued a separate dissenting opinion arguing that one of the disputed payments should have remained payable to Rwanda.

    Rwanda said it respected the ruling while noting that the legal issues remained open to differing interpretations.

    “Rwanda will continue to work constructively with international partners, guided by international norms and mutually beneficial cooperation,” government spokesperson Yolande Makolo said in a statement after the decision.

    The British government welcomed the outcome.

    “The UK robustly defended its position, and the tribunal has now ruled in favour of the UK on all grounds,” a government spokesperson said.

    The dispute originated from a highly controversial migration arrangement launched in 2022 by Britain’s previous Conservative government. The policy sought to transfer certain asylum seekers arriving in the United Kingdom to Rwanda, where their claims would be processed. The initiative faced years of legal challenges and political opposition before being abandoned by Prime Minister Keir Starmer’s Labour government in 2024.

    Only four migrants ultimately relocated voluntarily to Rwanda under the scheme before it was terminated, according to British authorities. The UK government has previously said roughly £700 million was spent on the policy.

    Rwanda launched arbitration proceedings in November 2025 under Article 22 of the asylum partnership agreement, arguing that Britain had failed to honor financial commitments and other obligations after ending the arrangement. Public hearings were held at the Peace Palace in The Hague in March 2026 before the tribunal delivered its final award.

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