Rwanda has filed an international arbitration case against the United Kingdom over the cancellation of a controversial asylum agreement, accusing the British government of breaching financial and legal obligations under the deal.
In a statement issued by Rwandan government, it had submitted a notice of arbitration to the Hague-based Permanent Court of Arbitration (PCA), arguing that Britain failed to honour payment commitments following the termination of the Migration and Economic Development Partnership.
The asylum deal, signed in 2022 under the previous Conservative government, provided for the transfer of some asylum seekers who had entered the UK illegally to Rwanda, in return for substantial financial support. The policy was scrapped in 2024 shortly after Prime Minister Sir Keir Starmer’s Labour government took office.
Rwanda says it is owed £100 million in payments that were due under the treaty—£50 million scheduled for April 2025 and another £50 million for April 2026. According to Kigali, the UK requested in November 2024 that Rwanda forgo the payments in anticipation of terminating the agreement.
“Rwanda indicated it was prepared to accept these arrangements should the treaty be terminated, provided that new financial terms would be negotiated and agreed,” the government said. “Discussions between Rwanda and the United Kingdom did not, however, ultimately take place, and the amounts remain due and payable under the treaty.”
Rwanda further accused the UK of failing to honour a separate commitment under the agreement to resettle a small number of vulnerable refugees already hosted in Rwanda, a provision that British authorities had previously said would involve “tens” of individuals with complex needs.
The UK Home Office confirmed it would contest the case. A spokesperson said the Rwanda policy was “a complete disaster” that cost British taxpayers approximately £700 million while resulting in the relocation of only four voluntary migrants.
“We will robustly defend our position to protect British taxpayers,” the spokesperson said, adding that the government was now focused on “effective ways to tackle illegal migration, not costly gimmicks.”
The £700 million spent under the scheme included about £290 million already paid to Rwanda, as well as additional contingent payments tied to future transfers that never occurred. Under the agreement, the UK had also committed to paying £120 million upon the relocation of 300 people.
Relations between London and Kigali have deteriorated further in recent months, with the UK pausing some aid to Rwanda over allegations that it supports the M23 rebel group in eastern Democratic Republic of Congo. Rwanda has denied backing the rebels, instead blaming Congolese and Burundian forces for renewed fighting that has displaced hundreds of thousands.
Under the treaty, unresolved disputes are to be referred to the Permanent Court of Arbitration, which has the authority to issue binding rulings. The PCA has not yet announced a timetable for the case, which could take years to resolve.
Rwanda said the formal termination of the asylum treaty will take effect on 16 March 2026.
The legal action has drawn sharp political reactions in Britain, with Conservative figures blaming Labour for scrapping the policy prematurely. However, the UK government has maintained that it bears no further financial obligation and has previously indicated it was exploring ways to recover funds already spent.
The outcome of the arbitration will have significant financial and diplomatic implications for both countries.
