The Rwandan government has initiated international arbitration proceedings against the United Kingdom, seeking £100m in payments it claims are owed following the cancellation of a bilateral asylum agreement.
Rwanda alleges that the UK breached the terms of the Migration and Economic Development Partnership after Prime Minister Sir Keir Starmer’s government scrapped the deal, which was originally signed in 2022 under the former Conservative administration led by Boris Johnson.
Under the agreement, the UK committed to making payments to Rwanda in exchange for hosting asylum seekers who arrived illegally in Britain. However, Kigali now argues that London failed to meet key financial and resettlement obligations outlined in the pact.
In a statement, the Rwandan government said it decided to pursue arbitration after what it described as the UK’s “intransigence on these issues.” The claims reportedly centre on unpaid funds amounting to £100m, the public disclosure of confidential financial terms, and the UK’s alleged refusal to resettle vulnerable refugees from Rwanda as agreed.
As part of the partnership, the UK had pledged to resettle a small number of vulnerable refugees already living in Rwanda but not transferred from Britain. In 2022, the Home Office estimated this would involve “tens” of individuals with complex needs, including serious health conditions.
Responding to the legal action, a Home Office spokesperson criticised the policy of the previous government, saying: “The former Rwanda scheme wasted vast sums of taxpayer time and money. We will robustly defend our position to protect British taxpayers.”
The Rwanda deportation plan, aimed at deterring irregular migration across the English Channel, ultimately saw only four voluntary migrants relocated before it was abandoned. Following Labour’s victory in the 2024 general election, Sir Keir Starmer declared the policy “dead and buried.”
Overall, the UK government spent approximately £700m on the Rwanda scheme, including £290m already paid to Rwanda. In December 2024, the Home Office disclosed that an additional £100m would have been payable under the treaty across the 2025–26 and 2026–27 financial years. The agreement also included a provision for a £120m payment upon the transfer of 300 migrants.
Despite the deal containing a break clause allowing either party to terminate the agreement with written notice, Rwanda maintains that the UK’s actions constitute a breach warranting compensation.