KIGALI, Rwanda — The Rwandan government has filed an international arbitration case against the United Kingdom, claiming it is owed £100 million in unpaid funds following the cancellation of a controversial asylum agreement by Prime Minister Sir Keir Starmer’s government.
In a statement, Rwanda said it had initiated arbitration proceedings after what it described as the UK’s “intransigence” over payments due under the Migration and Economic Development Partnership (MEDP), an agreement signed in 2022 under the previous Conservative administration.
Under the deal, the UK committed to making payments to Rwanda in exchange for hosting asylum seekers who had arrived in Britain illegally. The policy was intended to deter dangerous Channel crossings but was scrapped shortly after Labour won the 2024 general election.
Rwanda argues that the UK breached the agreement by failing to make scheduled payments totalling £100 million, publicly disclosing financial terms of the treaty, and refusing to honour commitments to resettle vulnerable refugees from Rwanda to the UK.
The Rwandan government said it is advancing three claims in arbitration: breach of financial obligations under the agreement, breach of confidentiality provisions, and failure to facilitate the resettlement of vulnerable refugees hosted in Rwanda.
As part of the partnership, the UK had agreed to resettle a limited number of vulnerable refugees already living in Rwanda, including individuals with acute medical needs. In 2022, the UK government said the figure was expected to be “tens” of cases.
The Home Office confirmed that £100 million in additional payments would have fallen due under the treaty—£50 million in each of the 2025–26 and 2026–27 financial years—had the agreement remained in force.
A Home Office spokesperson defended the decision to cancel the scheme, saying the policy had wasted public funds.
“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 spokesperson said.
The Rwanda policy cost the UK an estimated £700 million, including £290 million already paid to Kigali. An additional £120 million was contractually tied to the transfer of 300 asylum seekers.
Despite the scale of spending, only four volunteers were relocated to Rwanda before the scheme was halted. Shortly after taking office, Sir Keir described the policy as “dead and buried”.
The agreement contained a termination clause allowing either party to withdraw through written notice. Rwanda said it regretted the UK’s decision to end the partnership and had been left with no alternative but to pursue arbitration.
