Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026

Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026

Rwanda has initiated arbitration against the UK over a cancelled asylum deal, claiming a breach of financial terms. The case is filed with the Permanent Court of Arbitration.
KIGALI, Jan 28 (Reuters) - Rwanda has filed an arbitration case against Britain over a cancelled asylum deal that Prime Minister Keir Starmer scrapped in 2024, the government of the East African nation said.
Under the scheme, signed before Starmer took office, Britain agreed to pay Rwanda to take in migrants who had arrived illegally in Britain. It only sent four people voluntarily to Rwanda, as the plan was stalled by legal challenges.
Rwanda has submitted a notice to the Hague-based Permanent Court of Arbitration, arguing Britain had breached the financial arrangements of the "migration partnership", its government said in a statement on X on Tuesday.
It added that Britain had asked it in 2024 to forgo two payments of 50 million pounds ($69 million) due in April 2025 and April 2026 in anticipation of the formal termination of the treaty underlying the deal.
Rwanda said it was prepared to agree, provided the treaty was terminated and new financial terms were negotiated and agreed.
"Discussions between Rwanda and the United Kingdom did not, however, ultimately take place, and the amounts remain due and payable under the treaty," the government added.
After Starmer cancelled the deal, his government said it had wasted taxpayer money and no further payments would be made.
Ties between Britain and Rwanda soured last year, when London paused some aid over Rwanda's role in the war in Democratic Republic of Congo.
Rwanda has faced global pressure over accusations that it supports the M23 rebel group there.
Kigali denies backing M23 and has blamed Congolese and Burundian forces for renewed fighting that has killed thousands and displaced hundreds of thousands in the past year.
($1=0.7245 pounds)
(Reporting by Philbert Girinema and Elias Biryabarema; Editing by Alexander Winning and Clarence Fernandez)
The main topic is Rwanda's arbitration case against the UK over a cancelled asylum deal.
Rwanda claims the UK breached the financial arrangements of the asylum deal.
British Prime Minister Keir Starmer cancelled the asylum deal in 2024.
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