East African Community Mediation Agreement Act, 2025 (Act 22 of 2025)

SCHEDULES

Schedule 1 The East African Community Mediation Agreement, 1984 Schedule 2 Joint Institution and Common Services

Easl African Community Mediation

THE EAST AFRICAN COMMUNITY MEDIATION AGREEMENT ACT, 2025

An Act to give force of law in Uganda to the East African Community Mediation Agreement, 1984 and for related matters.

Date Of Assent: 3rd July, 2025

Date of Commencement: See Section 1 Preamble

WHEREAS an Agreement for the division of assets and liabilities of the former East African Community cited as the "East African Community Mediation Agreement, 1984" and set out in Schedule 1 to this Act, was signed on the 14th May, 1984 on behalf of the Governments of the United Republic of Tanzania, the Republic of Uganda and the Republic of Kenya, at Arusha, Tanzania;

AND WHEREAS it is expedient to make provision for giving legal effect in Uganda to the provisions contained in that Agreement. NOW THEREFORE, BE IT ENACTED by Parliament as follows:

This Act shall be deemed to have come into force on the 14th day of May, 1984.

In this Act, unless the context otherwise requires-

3. Agreement to have force of law in Uganda The East African Community Mediation Agreement, 1984 set out in Schedule 1 to this Act, shall have the force of law in Uganda.

The Minister may, by statutory instrument, make regulations to give effect to the provisions of this Act.

SCHEDULES

Schedule 1 Sections 2 , 3

THE EAST AFRICAN COMMUNITY MEDIATION AGREEMENT 1984

AGREEMENTFORTHEDIVISION OF ASSETS AND LIABILITIES OF THE FORMER EAST AFRICAN COMMUNITY

Agreement between the Governments of the United Republic of Tanzania, the Republic of Uganda and the Republic of Kenya (hereinafter collectively referred to as the "States").

WHEREAS:

The States by the Treaty for East African Cooperation, dated 6th June, 1967, established the East African Community (hereinafter referred to as "the Community"), and, as institutions thereof, certain Corporations (hereinafter collectively referred to as "the Corporations") and provided for certain services to be administered by the Community (hereinafter referred to as "the General Fund Services");

The Community and the Corporations ceased to perform their functions in 1977 and the General Fund Services can no longer be administered;

Conscious of the need to achieve a rational settlement of the Community's affairs, the States engaged the services of a Mediator (hereafter referred to as "the Mediator")

The Mediator, on the basis of the findings presented in his Consolidated Report dated 2811' October, 1981 (hereafter referred to as the "Consolidated Report"), and in subsequent documents has made

proposals for the permanent and equitable division of the assets and liabilities of the Corporations and the General Fund Services;

NOW THEREFORE, the States, having considered the proposals of the Mediator, hereby agree as follows;

Definitions

In this Agreement, unless the context otherwise requires, the following terms and letters have the following meanings:

Assets and Liabilities Covered

2.00 This Agreement covers the assets and liabilities of the Corporations and the GFS at the division date of each Corporation and of the GFS.

Net Assets; Equity Shares; Excess and Shortfall

3.00 The amount of the net assets of the Corporations and of the GFS held in each of the States, the allocation of such amount as equity shares among the States, taking into account the geographic location of such assets and the common ownership interests by the States in such assets, and the resulting excess or shortfall of net assets are: EQUITY SHARE

Kenya Tanzania Uganda 32% 26% , Shj.m S/n Shs.m im Shs.m Sm Shs.m S/n

Assets held ......................... 11,913 1.432.640 6,207.00 746.445 4,198.00 504.845 1,508.00 181.350

Equity Shares 5,003.46 601.709 3,812.16 458.445 3,097.38 372*486 (427.) (327.) (267.) Excess (Shortfall) 1.203 54 U4T36 385.34 __46AOO_^ (1.589.38) (191.136)_

Compensation to Uganda for Shortfall OF NET ASSETS; INTEREST PAYMENTS

4.01 Kenya and Tanzania shall compensate Uganda for its shortfall of net assets as set forth in Article 3 hereinabove by one or more of the following methods: (a) payments in convertible currencies; (b) the provision of goods;

4.02 Kenya and Tanzania shall pay interest at the rate of seven per cent (7%) per annum from the date of signing of this Agreement on the outstanding amounts of compensation due to Uganda from time to time under this Article. Compensation for Equipment and Allocation of Rolling Stock to Uganda

5.01 Kenya shall pay to Uganda the amount of shillings one million (Shs. 1 .m) equivalent to United States dollars one hundred and twenty thousand (US $120,000) being compensation for certain GFS equipment.

5.02 Kenya shall transfer to Uganda the number of coaches and wagons of the quality, size and specifications as set forth in the Rolling Stock Report.

Valuation of long-term Liabilities

6.00 The long-term liabilities of the Corporations and of the GFS at the division date of each Corporation and of the GFS amount to shillings two thousand eight hundred and sixty-three million, eight hundred thousand (Shs. 2,863,800,000).

Allocation of long-term Liabilities; Interim Payments

7.01 The long-term liabilities of the Corporations and of the GFS as at the division dates, set out in Annex "A", are allocated to the States in the proportion of forty-two per cent (42%) to Kenya, thirty-two per cent (32%) to Tanzania and twenty-six per cent (26%) to Uganda.

TABLE OF DIVISION

TOTAL KENYA TANZANIA UGANDA

42% 32% 26% Shs.m $m Shs.m $m Shs.m $m Shs. m Sni

Long-Term 2,863.800 344 396 1,202.796 144.646 916 416 110 207 744.588 89.543 Liabilities

7.02 Payments made by each State in respect of the long term liabilities from the division dates to 30th June, 1984, shared either in excess or short of the proportion allocated to a State in Sub Article 7.01 are to be taken into account in calculating the amount of compensation due by or to that State under Article 4.

Liability towards creditors

8.01 The creditors of the long-term liabilities and the States having agreed to the division of the liabilities pursuant to Article 7 and, where applicable, to the elimination of joint and several guarantees in respect of such liabilities, each State shall solely be responsible for such balance of liabilities allocated to it and as reflected in the separate Agreement between each State and each Creditor.

8.02 The repayment to local holders of loan stocks issued by the Corporations, shall be the responsibility of the Government of the State in which the stockholders reside.

8.03 Each State hereby indemnifies the other States against all responsibilities for the liabilities it has assumed as provided in Sub Article 8.01 and 8.02.

8.04 Notwithstanding any other provision in this Agreement to the contrary, the effective date of Sub-Article 8.01 shall be Is' July, 1984.

Claims

9.01 Claims, registered prior to 31s1 December, 1978, other than claims for pensions by former members of staff of the Community institutions, claims against E.A. Airways and long-term liabilities, shall be dealt with as follows: (a) Claims for amounts due in the currency of one of the State are assigned to, and shall be dealt with by such State in accordance with its existing procedures;

9.02 Claims against E.A. Airways registered prior to 31st December, 1978, not allocated as part of the long-term liabilities pursuant to Article 7, shall be dealt with by the State in which they were registered in accordance with that State's existing procedures.

Pension and Provident Funds

10.01 The assets of the Pension and Provident Funds of the Corporations and GFS consist of the value of the Pension and Provident Funds assets located in the States and those currently held and managed by the Crown Agents.

10.02 The Pension assets and liabilities of the Corporation and GFS shall be subject to an actuarial exercise which shall determine the value of the Pension assets and liabilities in each State and abroad for a decision by the States on the final division of the assets and the liabilities.

10.3 Pending the determination of the Pension and liabilities for each state- (a) Pension and Provident Funds assets located in the States shall continue to be vested and managed by the States where they are so located.

Agreement. If any question of procedure arises which is not covered by the said Annex, the Board shall decide the question.

10.04 The value of the assets of the Pension Fund of EAP & T other than those covered in Sub-Article 10.01 above, located in Uganda shall be ascertained and a decision made thereon by the States in the light of actuarial and other findings.

10.05 Each State shall-

10.06 (a) Each State shall pay to members of staff formerly employed by the Corporations or GFS, other than those covered by the Pensions Take-over Agreement with the United Kingdom whose last duty station was within its territory, and to their widows and orphans the pensions and other benefits lawfully due to them on account of such employment.

Other Assets

11.01 Other assets of the Community held by the Crown Agents consist of-

(£4,037,915) shall be used to redeem the following two loan stocks;

-1957 East African High Commission (Railways and Harbours) 5%% 1977-83.

- 1956 East African High Commission (Railways and Harbours) 5'/z% 1980-84. Any surplus will be divided among the States in accordance with the Mediation formula-

11.02 The amount due from the United Kingdom to the Community arising out of the Pensions Take-over Agreement which is currently estimated at Pounds Sterling five hundred and sixty-four thousand (£564,000) shall be distributed to the States in the proportion of forty-two per cent (42%) to Kenya, thirty-two per cent (32%) to Tanzania and twenty-six per cent (26%) to Uganda.

11.03 Any other assets not particularly provided for in this Agreement, which after the signature of this Agreement are ascertained by the States, the Board of Trustees or any other person or body as belonging to the Community, shall automatically vest in the Board of Trustees which shall manage and administer the same until a decision is made by the States for the final disposal thereof.

Settlement of Disputes 12.01 Any dispute between two or more of the States and/or any claim by any one or more of them against any other of the States arising under this Agreement, including any question concerning its interpretation or implementation, which cannot be determined by agreement between the parties, shall be submitted for decision to Arbitration Tribunal.

12.02(a) The Tribunal shall consist of four members appointed as follows-

each State shall appoint one member, the fourth member, who shall be the Chairman of the Tribunal and who shall not be a national of any of the States, shall be appointed by agreement of the States-

12.03 The Tribunal shall function in accordance with the Rules of Procedure set forth in Annex "E" to this Agreement. If any question of procedure arises which is not covered by the said Annex, the Tribunal shall decide the question.

12.04 Every decision of the Tribunal shall be taken by the majority of the members present at a sitting, and where the members are equally divided in their opinions, that of the Chairman shall prevail.

12.05 The decisions of the Tribunal shall be in writing and shall be signed by each member present at the sitting.

12.06 The States shall by mutual agreement determine the terms and conditions of service of the Chairman of the Tribunal.

12.07 Each State shall pay the member of the Tribunal representing it allowances and other remuneration for attendance at sessions of the Tribunal. In addition, each member will be reimbursed by the State which appointed him for expenses reasonably incurred by him in the course of his duties as a member of the Tribunal. 12.08(a) There shall be a Registrar who shall be appointed by agreement of the States-

12.09 The Registry of the Tribunal shall be situated in Kampala, Uganda.

12.10 The Tribunal may in particular case meet and exercise its jurisdiction at any place, within the States, it considers desirable.

12.11 The Tribunal shall cease to exist upon the full and final payment and settlement of all compensation, claims and disputes under this Agreement.

Law Governing this Agreement

13.00 The Tribunal shall apply legal principles common to the contracting States and recognized principles and rules of International Law.

Continuation of Certain Institutions and Services; Future Co-Operation

14.01 The States agree that the Soroti Civil Flying School, the East African Development Bank, the East African Inter-University Committee, the Eastern and Southern African Management Institute, and the East African Community Library Services shall continue to function as joint East African institutions or common services, as the case may be, and agree to make appropriate arrangements for the financing and operation thereof.

14.02 The States agree to explore and identify further areas for future co-operation and to work out concrete arrangements for such co-operation.

Abrogation of the treaty for East African Co-Operation

15.00 The Treaty for East African Co-operation, dated 6th June, 1967, is hereby abrogated.

Entry into Force 16.00 This Agreement shal 1 enter into force upon its signature.

Citation

17.00 This Agreement shall be cited as "the East African Community Mediation Agreement, 1984"

Scope of this Agreement

18.00 This agreement consists of 18 Articles and 6 Annexes, each of which forms an integral part hereof. The Agreement is made and signed in five originals, all in English and all of them being equally authentic. Each State shall retain one original and the fourth and fifth originals shall be deposited with the Secretaries-General of the United Nations and the Organisation of African Unity. Done at Arusha, Tanzania, on the fourteenth day of May in the year one thousand nine hundred and eighty-four. IN FAITH WHEREOF the undersigned have placed their signatures at the end of this Agreement.

For the Government of For the Government of For the Government of the United Republic of the Republic of Uganda the Republic of Kenya Tanzania

_____ JULIUS K. NYERERE A. MILTON OBOTE DANIELT. ARAP MOI President President President

ANNEXES TO THE MEDIATION AGREEMENT

"A" Long-term Liabilities and allocation thereof.

"B" The Rolling Stock Report.

"C" Kenya/Uganda Compensation Agreement.

"D" Tanzania/Uganda Compensation Agreement.

"E" Rules of Procedure of the Arbitration Tribunal.

"F" Rules of Procedure of the Board of Trustees.

ANNEX "A" LONG-TERM LIABILITIES AND ALLOCATION THEREOF I-Loans from Governments and International Agencies Balance at Division Date

Total Kenya Tanzania Uganda Currency Shs. '000 Shs. '000 Shs. '000 Shs. '000 42% 32% 26% British Government E.A. P.ailways 1961 £5.6m 64% 1986 Ex chequer £3.475,656 49,448 20,768 15,823 12,857 1965 £3 15m 7.1% 1984 ECGD £1,622,250 23.199 9,743 7,424 6.032 1970 £1.0m 1995 (interest free) ........................... £922,400 13,190 5,540 4,221 3,429 1970 £ 1.0m 54 % 1982 com- merci.-'.l Credit £595,875 8,521 3,579 2,727 2,215 E.A.P.//.T. 1961 £0.75m6i% 1986 Ex chequer £413,530 5,881 2,470 1,882 1,529 1963 £O.25m 5$ % 1988 Ex- chequer .. £164,913 2,359 991 755 613 E.A. Harbours 1961 £J.9m 6j% 1986 Ex chequer £1,127,935 16,129 6,774 5,161 4.194 ______ £8.322,559 ___ 118,727 49.865 37,993 30,869

IFerr German Government E.A. Railways 1964 AL 60 DM 8.96m.. DM3,466,296 11,245 4,723 3,598 2,924 1971 AL 634 DM 8.<m 1966 ........................... DM8.598.O98 30,766 12,922 9,845 7,999 DM12.064.394 ___ 42.011 17.645 13,443 10.923

Italian GovernmentICondotfe GFS........................................ Lire! 3,497m 123.970 52,067 39,671 32,232 Zambian Government EA. Harbours 1966Kw4.0m6% 1982 .. Kw1,234,000 12,975 5,450 4,152 3.373 East African Governments E.A. Railways Shs. 150.000,000 150.000 63,000 48,000 39,000 E.A.P. &T. Zanzibar Govt................... $1,617,670 13,450 5.649 4,304 3.497 GFS Balance . Shs.2,000.000 2.000 840 640 520 Sinking Fund (£70.509) (900) (378) (288) (234) 164,550 69.111 52,656 42.783 I.B.R.D. EA. Railways No. 428-1 EA .. S28.48O.OOO 257,006 107.942 82.242 66,822 No. 674 E.A....................... S31,590.000 259,495 108,988 83,038 67.469 E.A.P. & T. No. 483 E.A....................... S10,890,000 111,000 46.620 35,520 28,860 No. 675 E.A. S9.890,000 79.600 33.432 25.472 20.696 No. 914 E.A....................... S22.650.000 181.700 76,314 58,144 47,242 E.A. Harbours No. 423-2 E.A................... $4,930,000 56,663 23,798 18.132 14.733 No. 638 E.A....................... $30,250,000 262,068 110.068 83,862 68.138 No. 365 E.A....................... $24,450,000 204,081 85,714 65,306 53,061

$163,130,000 1.411,613 592,876 451.716 367,021

ANNEX "A"-(contd/

I-Loans from Governments and International Agencies Balance at Dlrliion Date

Tanzania | Total Kenya Uganda

Currency Shs. '000 Shs. '000 Shs. '000 Shs. 'C00 42% 32% 26%

Canadian International Develop-1 tnent Agency E.A. Railways | 1970 CS14m 2020(interest | free) CS13,955,000 109.506 45.993 35,042 28.471 E.A. Harbours 1974 CS33.5m 2022 (in terest free) CS32.930.000 258,409 108.532 82,69! 67.186

CS46.885.000 367.915 154.525 117.733 95,657-

UNDP GFS...................................... S414.791 3,061 1,286 979 796

International Co-operation Admi nistration E.A. Harbours £103.914 1.486 624 476 386 VERNMENTS AND INTER NATIONAL AGENCIES .. 2,246.308 943.449 713.819 584,040

II-Commercial Loans

Creditors of E.A.P. & T. C Itoh Credit Ycn925.676.244 26,456 11,111 8,466 6,879 Cable and Wireless.. * • £470,332 6,726 2,825 2,152 1,749 Creditors of E.A. Airways DC 9 Loans National Bank of Kenya Shs. 10,361,000 10,361 4,351 3,316 2,694 Bank of Commerce, Tan zania Shs.9.700.000 9,700 4.074 3,104 2,522 Consortium of Uganda Banks ......................... Shs.2.O35.OOO 2,035 855 651 529 Eximbank 55.456.000 45.683 19.187 14,618 11,878 MdcDonnell Douglas 5606.000 5.074 2.131 1.624 1.319 VC 10 Loan-BAC £4,313,000 62.107 26.0S5 19,874 16,148 B707 loan-National. Bank of Kenya Shs.41,682.000 41,682 17,506 13,339 10.837 Special loan-National Bank of Kenya Shs. 18,945,030 18,945 7,957 6,062 4,926 Creditors of E.A Ex telcoms Standard and Chartered Bank, Tanzania .. 5833,035 6,368 2.675 2,038 1,655 Tanzania Investment Bank.. Shs. 13,000.000 13,000 5.460 4,160 3.380 Consort ium-Grindlays/ - Grindlays International, Uganda .. Shs.17.000,000 17.000 7.140 5.440 4,420 Grindlays Bank, Uganda .. Shs. 12.000.000 12.000 . 5.040 3,840 3.120 Marconi Communications - Limited .. £103,107 1.650 693 528 429

Total Commercial Loans. . 1 278.787 117.090 89.212 ___ 72.435

Annex 'A'-(Conid.) HI Loan Stock and Related Sinking Funds

Balance at Division Date

Total Kenya Tanzania Uganda Currency Shs. '000 Shs. '000 Shs. '000 Shs. '000 427. 327. 267.

E.A. Railways

1954 £Stg 5m 4% 1973/76 local register £471.390 6,819 2.864 2,182 1.773 1956 £Stg 3 0m 5|% 1980/ 84 London register £2.896.665 41,422 17,397 13,255 10.770 Local register £117.730 1.684 707 539 438 Sinking fund (£1.339.882) (19.160) (8.047) (6.131) (4.982) 1957 £Stg 8.5m 5i% 1977/ 83 London register £7.257.483 103,249 43.364 33,040 26.845 Local register £278.558 3.983 1,673 1.275 1,035 Sinking fund £(3.133.555) (44.810) (18.820) (14.339) (11.651) 1975 £Stg 5.9m 9% 1977 £6,810,428 97.750 41.055 31.280 25.415 1970 K£1.0m 6i% 1990 Balance ... Shs.22.700.000 22.700 9.534 7,264 5.902 Sinking fund Shs.(702,000 ) (702) (294) (225) (183) 197! K£2-0m 6J% 1986 Balance .. Shs.45.437.858 45,438 19.084 14.540 11.814 Sinking fund Shs.(859.OOO) (859) (361) (275) (223) E.A.P. & T. 1957 £Stg. 3.0m 5i% 1977/ 83 Balance (London and local)............................. £3.000.000 42.900 18,018 13.728 11.154 Sinking fund £(1.087,183) (15.200) (6,384) (4.864) (3.952) EA. Harbours

1956 £Stg 0.5m 5J% 1980/ 84 London register £482.789 6,904 2.900 2.209 1.795 Local register £17.221 246 103 79 64 Sinking fund (223.240) (3.192) (1.341) (1.022) (829) 1957 £Stg 1.0m 1977/ 83 London register £1.004.919 14,370 6,036 4.598 3.736 Local register £32.336 462 194 148 120 Sinking fund (435.536) (6.228) (2.616) (1.993) (1.619) 1971 K£1.4m 6|% 1986 Shs.29,149,504 29.150 12.243 9.328 7.579 1946 Supplementary Fund Kenya 2i% Sinking fund £(177.572) (2.539) (1,066) (813) (660)

Total Loan Stocks and Related Funds 324.387 136.243 103.803 84.34) • • i

IV Overdraft and Cash Balances

Crown Agents EA. Railways-overdraft £2.297.117 32.849 13.796 10.512 8.541 E.A.P. & T.-overdraft £1.905.627 27.250 11.445 8.720 7.085 Miscellaneous receipts .. £(127.268) (1.801) (757) (576) (468) GFS-overdraft .. £364.924 5.474 2.299 1.752 1.423 £4.440.400 63.772 26.783 20,408 16.581

[V Overdraft and Cash Balances ANNEX 'A'-(Conrd)

Balance at Division Date

1 Total Kenya Tanzania Uganda

Currency Shs. '000 Shs. '000 Shs. '000 Shs. '000 42% 32% 26%

E.A. P. &■ T. Headquarters Accounts Uganda Commercial Bank Shs.(678.667) (679 ) (285) (217) (177) Grindlnys Bank, Uganda Shs.(1.049,233) (1.049) (440) (336) (273) New York SC26.374) (219) (92) (70) (57)

GFS Overseas accounts

London £(4,991) (80) (33) (26) (21) Bombay and Karachi •> (75) (32) (24) (19) Montreal (115) (48) (37) (30)

Total Overdrafts and Bank Balances............................ 61.555 25.853 19.698 16.004 t i___________ :__________ ..

V Miscellaneous

Creditors of E.A. Railways

Unallocated loan interest Shs.5.400.000 5.400 2.268 1.728 1.404

Owed to E.A. Governments by E.A.P. <Sc T.

1949 initial conversion (1979) 3% Shs.3.190.023 3,190 1.340 1.021 829 Depreciation loans Shs.9,659.480 9,660 4,057 3,091 2,512 Overseas and liabilities of E.A. Railways

Overseas assets Shs.(l 50200.000)* (150200) (63,084) (48.064) (39.052) Overseas short-term liabilities .. Shs.46.400.000* 46.400 19.488 14.848 12.064

•Various currencies.

E.A. Cargo Handling

E.A. Harbours debenture .. Shs.4.600.000 4.600 1.932 1.472 1,196 E.A. Harbours loan Shs.22.500.000 22,500 9,450 7,200 5.850 GFS

Pension fund loans Shs.12.112.636 12.113 5.088 3.876 3.149 Building in Montreal Shs (900,000) (900) (378) (288) (234)

Total Miscellaneous ___ (47237) j (19.839) (15.116) (12.282) _ SUMMARY Loans from Governments and International Agencies 2.246,308 943.449 718.819 584.040 Commercial loans 278,787 117.090 89.212 72.485 Loan stocks and related sinking funds 324,387 136.243 103.803 84.341 Overdrafts and cash balances 61.555 25.853 19.698 16.004 Miscellaneous (47.237) (19.839) (15.116) (12,282)

2 863.300 _ L_ J^-588 1,202.796 916.416 1 I NOTE: The rates of exchange used in this table are as in the Mediators Consolidated Report. The principal rates involved at 30 June, 1977 are: £l=Shs.14.30001, US$l=Shs 8 31542, DMl=Shs.3.55059, Canadian Sl=Shs.7.84723.

ANNEX"B" D. M. S. FAIRWEATHER, B.SC. (HONS), E.ENG., F.L.MECH. E.CONSULTING ENGINEER 57 GRESHAM ROAD, OXTED, SURREY, RHB OBU. 7th December, 1982 Gentlemen, EAST AFRICAN COMMUNITY-MEDIATION WORKING PARTY ON RAILWAY ROLLING STOCK Following the agreement reached between all railways at the meetings of the Working Party in Kampala on December 1st and 2nd, of which your delegates will already have advised you, a detailed list of the rolling stock to be allocated to Kenya and to Uganda has been drawn up in strict accordance with the methods agreed by the Working Party. A copy of this list is enclosed. It was also agreed by the Working Party that any minor adjustments to this list, which may arise from practical problems relating to individual vehicles, should be agreed in bilateral discussions between the two railway organizations. Copies of the following Annexes to the Agreement of December 2nd are also enclosed. Annex 1. List of rolling stock in existence at census date. Annex 2. List of rolling stock scrapped, or listed for scrapping, since the division date (30th June, 1977). Annex 3. Detailed division of rolling stock between Kenya and Uganda, by type of vehicle, age group and technical features.

Yours faithfully,

D. M. S. FAIRWEATHER, Chairman, Working Party.

The Managing Director, Uganda Railways Corporation, P.O. Box 7150, Kampala, Uganda.

The General Manager, Tanzania Railways Corporation, P.O. Box 468, Dar-Es-Salaam, Tanzania.

The Managing Director, Kenya Railways Corporation, P.O. Box 30121, Nairobi, Kenya.

EAST AFRICAN COMMUNITY MEDIATION WORKING PARTY ON ROLLING STOCK

PRESENT WERE: Mr. D. M. S. Fairweather - Chairman -K.R.C. - Deputy Chief Mechanical and Mr. J. K. Njue -K.R.C. Electrical Engineer Mr. S. Ludek - Data Processing Officer -U.R.C. Mr. S. M. Kwesiga - Chief Mechanical Engineer -U.R.C. Mr. C. Karamagi - Chief Traffic Manager -U.R.C. Mr. E. M. Kasimbazi - Chief Civil Engineer -U.R.C. Mr. D. Murungi - Mechanical Engineer (Technical) -T.R.C. Mr. S. Kabipe - Assistant Chief Mechanical -T.R.C. Engineer Mr. G. N. Hizza - Corporate Planning Manager -T.R.C.

by the Mediator in his Consolidated Report of October, 1981.

sources of information on rolling stock in Kenya and Uganda, have agreed on a comprehensive list of all rolling stock in existence and of vehicles known to have been scrapped since the division date (30th June, 1977).

life expired vehicles, either scrapped in Kenya or listed to be scrapped in Uganda should not feature in the division of rolling stock.

scrapped as a result of accident damage, should be charged to the Railway on which the accident occurred.

deduction of life expired stock (either scrapped in Kenya or listed to be scrapped in Uganda) has been divided exactly the same proportions, for coaches and goods wagons, as in the Mediator's Terms of Reference.

The numbers of stock are: Total No. Kenya No. % Uganda No. % Coaches 509 402 79 107 21 6,354 5,422 853 932 14.7 Wagons TOTAL 6,863 5,824 1,039

Railways, and to assist as far as possible in Uganda's maintenance situation, the division of rolling stock in detail, covering every type of vehicle, age group and principal technical features was agreed; this division closely reflecting the Mediator's recommendations in his consolidated report of October, 1981, both numerically and financially.

and identification of individual coaches and wagons in accordance with the above allocation.

wagons and coaches that were scrapped, or have been condemned, in Tanzania, since the division date. This is submitted for record and adjustment to para. 61 of the ■ Mediator's Consolidated Report of October, 1981.

S. M. KWESIGA, for Uganda Railways Corporation.

J. K. NJUE, for Kenya Railways Corporation.

S. M. KABIPE, for Tanzania Railways Corporation. (Observers).

D. M. S. FAIRWEATHER, Chairman, Working Party.

ANNEX "C"

COMPENSATION AGREEMENT BETWEEN THE GOVERNMENTS OF THE REPUBLIC OF UGANDA AND THE REPUBLIC OF KENYA IN RESPECT OF THE SHORTFALL OF NET ASSETS UNDER THE MEDIATION AGREEMENT

AGREEMENT between the Governments of the Republic of Uganda (hereinafter referred to as "Uganda") of the one part and the Republic of Kenya (hereinafter referred to as "Kenya") of the other part: WHEREAS: By virtue of the Agreement for the division of the Assets and Liabilities of the former East African Community (hereinafter referred to as the "Mediation Agreement") Kenya shall compensate Uganda for her shortfall of net assets the amount of shillings one billion, two hundred and three million, five hundred and forty thousand (Sh. 1,203.54 million) equivalent to United States of America dollars one hundred and fortyfour million, seven hundred and thirty-six thousand (US $144,736 million) calculated at the rate of Sh.8,315.42 per 1 US dollar as at 30th June, 1977. The amount shall be paid in convertible currencies. Pursuant to Article 5.01 of the Mediation Agreement, Kenya shall further compensate Uganda for the General Fund Services Equipment, the amount of shillings one million (Sh.l million) equivalent to United States of America dollars one hundred and twenty thousand (US $0.12 million) calculated at the rate of Sh.8.31542 per 1 US dollar as at 30th June, 1977. The amount shall be paid in convertible currencies. By virtue ofArticle 4 of the Mediation Agreement and the Memorandum of Understanding between Kenya and Uganda dated 3rd March, 1984, the compensation to Uganda shall consist of the following methods- (i) convertible cash;

The parties hereto acknowledge the fact that there exist claims due to Kenya payable by Uganda Government arising out of the Inter Central Bank's Credit Facility Agreement of 1981 between Kenya and Uganda and the current indebtedness of the Uganda Government and her parastatal bodies to the Kenya Government, Kenya parastatal bodies and Kenya private sector.

NOW THEREFORE Kenya and Uganda agree on the methods of payment of compensation as hereunder: Article I Amount of Compensation The compensation amount is the sum of United States of America dollars one hundred forty-four million, seven hundred and thirty-six thousand (US $144,736 million) and a further sum of United States American dollars one hundred and twenty thousand (US $0.12 million) amounting to a total sum of United States of America dollars one hundred forty-four million, eight hundred and fifty-six thousand (US$144,856 million). Article II Payment of Compensation The amount hereinabove stated in Article I shall be paid over a period of eight 8 years with interest at the rate of seven per cent (7%)

per annum on outstanding balances from the date of signature of the Mediation Agreement as follows- (i) For the first five years, the annual sum of United States of America dollars twenty nine million, four hundred and twelve thousand (US $29,412 million) inclusive of interest shall be paid by Kenya to Uganda in ten (10) half-yearly instalments of United States of America dollars fourteen million, seven hundred and six thousand (US $14,706 million) each, commencing on Is' July, 1984 or three months after the signing of the Mediation Agreement whichever is the earliest and ending on 1st January, 1989 inclusive as set out in Schedule "A" to this Agreement. (ii) The balance outstanding as at 1st July, 1989 or such subsequent date subject to the due date of the first instalment in Article (II) (i above, shall be paid in three (3) years in six equal half-yearly instalments inclusive of interest commencing six months after the last instalment in Article (II (i) above and ending on the 1st day of July, 1992, or such subsequent date depending on the date of the first instalment herein. Provided that after working out and adjusting Schedule "A", Schedule "B" shall be worked out and shall form part of this Article and shall be read and interpreted together with this Agreement

Article III Payment in Convertible Cash The compensation amount payable by Kenya to Uganda in convertible cash shall be paid into the bank of Uganda's account with the Federal Reserve Bank in New York.

Article IV Set-Off (i) Upon the coming into effect of the Mediation Agreement, there shall be a set-off against the compensation amount payable by Kenya Government to the Uganda Government the amount payable by Uganda Government to Kenya Government arising out of the Inter Central Banks' Credit Facility Agreement of 1981 and such other debts owed by Uganda Government and her parastatals to the Kenya Government, Kenya parastatals and Kenya Private sector, as shall have been verified by 1st July, 1984. (ii) Any debts which shall not have been verified by 1st July, 1984 shall be verified by 30th September, 1984 and off-set from the installment next following. 30th September, 1984 shall be the cut-off date for all current indebtedness. Article V Payment by off-setting cash payment for services rendered: GOODS OBTAINED AND ASSETS ACQUIRED

For the first five years Uganda shall at any time within any installment, consult Kenya and, taking into account proposals and views submitted by Kenya at such consultation, decide the amount to be off-set for - (a) any services rendered by Kenya to Uganda, (b) any goods obtained from Kenya by Uganda, (c) any fixed assets Uganda may acquire in Kenya.

Article VI Interest Kenya shall pay interest under Article 4.02 of the Mediation Agreement only on any outstanding amount of the compensation amount.

Article VII Waiver

Kenya shall waive all claims against Uganda arising out of the set-off specified in Article IV to the extent of the amounts found due to Kenya and set-off against Uganda as at 30th September, 1984.

Article VIII Amendments

This Agreement may be amended by mutual consent of the parties and such amendment shall be in writing and signed by duly authorised representatives of the two Governments and shall form an integral part of this Agreement. Article IX

Scope of Agreement

This Agreement shall be attached to and form an annex to the Mediation Agreement and constitute an integral part thereof.

Article X

Coming into Force

This Agreement shall come into force upon the date of signature of the Mediation Agreement.

DONE AT ARUSHA, this 31s' day of March, 1984.

SAM TEWUNGWA PETER C J.O. NYAKIAMO Minister of Regional Co-operation Minister ofState, Office of the for the Government of the Republic President for the Government of Uganda of the Republic ofKenya

Schedule "A"

PROPOSED PAYMENT SCHEDULE BY KENYA TO UGANDA IN U.S. DOLLARS (MILLION)

Date Outstanding US S Interest US S Total Due US S Payment Due US S

lrt July, 1984 114.856 2.535 147.391 14.706

1" January, 1935 132.685 4.644 137.329 14.706

1" July, 1985 122.623 4.292 126.915 14.706

I" January, 1986 112.209 3.927 116.136 14.706

I*1 July, 1986 101.430 3.550 104.980 14.706

1"January 1987 90.274 3 160 93.434 14.706

1" July 1987 78.728 2.755 81.483 14.706

1"January 1988 66.777 2.337 69.114 14.706

1" July 1988 54.408 1 905 56.313 14.706

1" January 1989 41 607 1.456 43.063 14.706

NOTE: The figure in Column 1, 2 and 3 will be adjusted subject to:

Annex "C" (II)

AMENDMENT (Number One)

WHEREAS on the 31s* of March, 1984 the Governments of the Republic of Uganda and the Republic of Kenya signed a compensation Agreement in respect of the Compensation amount of United States dollars one hundred forty-four million, eight hundred thirty fifty-six thousand (US $144. 856 m) payable by Kenya to Uganda.

AND WHEREAS article VIII permits the two Governments to amend the aforementioned Agreement;

AND WHEREAS after mutual consultations discussions it has become necessary to amend some Articles thereof.

NOW THEREFORE it is agreed as follows:

Article I

Substitutions and Amendments

Agreement dated 31s1 March, 1984, is deleted and substituted with the following provisions Article IV

Set off

1 .(B) Article VI (Interest) of the Agreement mentioned in 1 (A) above is amended to make the present provision (I) and introduce (ii) as hereunder:

"(ii) Aftertheset-offinArticleIV(I)and(ii)the balanceof the Compensation amount shall be subject to interest under Article 4.02 of the Mediation Agreement."

1 .(C) Article VII (Waiver) of the Compensation Agreement shall be amended by substituting the reference ( Article 11 ..."

in the second line with the reference: "....Article IV..... "

ARTICLE II Interpretation

II. This Amendment shall be construed, interpreted and read together with and shall form an integral part of the Agreement dated 31st March, 1984, and the subsequent amendment thereto.

DONE AT NAIROBI this 28,h day of April, 1984.

SAM TEWUNGWA PETER C.J.O. NYAKIAMO Minister of Regional Co-operation Minister ofState, Office of the for the Government of the Republic President for the Government of Uganda of the Republic of Kenya

ANNEXTURE "A "

SCHEDULE OF COMPENSATION PAYMENTS BETWEEN KENYA AND UGANDA • Uganda lo pay Kenya to pay ■ Institution.'Loan Kenya Uganda

A. Railways J. 1956 £stg. 3.5m 1980/84 .. .. .................................... £ 92,537.17 --

• ... 1 £ 233,925.80 J. 1961 £stg. 7.5m 1986 Exchequer.......................................................... £ 703,504.00

£ 295,025.00

£ 35,939.33

£ 46,199.00

1,141,671.00

1,322,910.40

114,771.85

B. Posts and Telecommunications

.................................

- -

II. Crown Agents Overdraft .. ............................... £ 13,980.00 -

6)^ ....................... £ 39,980.00

5j% ....................... £ 15,220.00

............................................. £ 13,320.00 C. flarhours

2- I.B.R.D. Loan 638-EA......................................................................... $ 2.049,704.00

9,819.86 D. CFS Liabilities

E. Stocks-Local Register (Non-Sterllng)

SUMMARY

£ 1,720.708.13 S 7,269,919.00. S 3.629,037.40 Y 275.184,947.00 -

Conversion to U.S. $ £ 1,720,708.13 ............................................. ............................................. U.S. s 2,959,100.04 s 7,269,919.00 Y 275,184.947.00 ............................................. ................................................. 5 1,027,547.93 5 11.256.566.97 'Uss ............................................. ................................................. S 3,629,037.40

Nrr Position.................................. ................................................. $ 7.627.529.57

ANNEXTURE 'B'

Kenya to pay Tanzania to pay Tanzania Kenya

Railways and Harbours:

1954 £Slg.5m 4 %-1973/76 .................................................................... £Stg.31,665.32 1957 £Stg.8.5m 51 %- 1977/83 ....................................................... £Stg.36,800.80 E.A. Government Loan USS240.529.16 1961 £Stg.7.5m 6}-1986 Exchequer Loan .. £Stg. 2,968 1970 £Stg. 1.0m-1995 ................................................................................. £Stg.9,454 1975 £Stg.5.9m 9 %-1977 Stock ....................................................... £Stg,53,280.58

Posts and Telecommunications:

C. Itoh Credit.............................................................................................. JY.338,689.165 Zanzibar Government Loan .. US£997.224 Marconi Communications .. .. ............................ £Stg.34,809 Standard and Chartered Bank USS349.675 Tanzania Investment................................................................................. USS846.251 Depreciation Loan USS43.452.17 1957 E.A.H.C. £Stg.3m 51 %-1977/83 ......................................... £Stg.53,24O Cable and Wireless ................................................................................. £Stg.l2,473.76 Crown Agents Overdraft .. • £Stg. 116,360 I.B.R.D. 483 E.A........................................................................................... USS379.86O I.B.R.D. 675 E.A........................................................................................... USS311,103 I.B.R.D. 914 E.A........................................................................................... USS805.163 6fc% British Exchequer Loan .. .. .. ............................ £StgJ8,36O 5|% British Exchequer Loan .. ............................ £Stg.5,O4O

Totals ...................................................... USS2.433.879.16 USS 1.544,578.17 JY.336,689,165 £Stg.424,451.46

KENYA-TANZANIA SETTLEMENT ANALYSIS

i Tanzania to USS pay Kenya

USS 2,433,879.16-1,544,578.17 USS (-) 889,301 (-) 889.301 £Stg. 424,451.46 £Stg. 424,451.46 4- 729,965 1

Japanese Yen 333,689,165 JY. 338.689,165 -M ,262.702

1,103,366

ANNEX "D" (1)

COMPENSATION AGREEMENT BETWEEN THE GOVERNMENTS OFTHE UNITED REPUBLIC OFTANZANi A AND THE REPUBLIC OF UGANDA IN RESPECT OF THE SHORTFALL OF THE ASSET ALLOCATION UNDER THE MEDIATION AGREEMENT

AGREEMENT between the Government of the United Republic of Tanzania (hereinafter referred to as "Tanzania") of the one part and the Republic of Uganda (Hereinafter referred to as "Uganda") of the other part:

WHEREAS by virtue of the proposed Agreement for the Division of the Assets and Liabilities of the former East African Community (hereafter referred to as the "Mediation Agreement") between the Governments of the United Republic of Tanzania, the Republic of Uganda and the Republic of Kenya, Tanzania, has agreed to compensate Uganda for its shortfall of net assets the amount of US $46.4m.

Under Article 4 of the said Mediation Agreement the payment of compensation to Uganda shall be made by several methods amongst which is the set-off of mutually recognized claims. The parties hereto recognize that there are outstanding claims due to Tanzania payable by Uganda arising out of the Loan Agreement dated 12th December, 1979, as amended by the Inter-Central Bank Commodity Loan Cred it Agreement dated 18th May, 1979, as amended by the Supplementary Agreement dated 18th December, 1979.

After the reconciliation of actual figures of figures of the Loans specified in the Long-term Liabilities schedule of the said Mediation Agreement under Article 7 thereof, there may arise claims between Tanzania and Uganda.

NOW THEREFORE IT IS AGREED AND DECLARED AS FOLLOWS:

That Tanzania hereby offers to compensate Uganda and Uganda hereby accepts to be compensated by way of set-off from the balance of Tanzania's outstanding claims as hereunder:

paid by way of set-off from Tanzania's claims against Uganda arising out of the Loan Agreement dated 12"' December, 1979, as amended on 26"' June, 1981.

paid by way of set-off from Tanzania's net claims against Uganda arising out of the Uganda/Tanzania set-off of loans under Categories I and II of the Long-term Liabilities schedule of the Mediation Agreement.

after the set-off in Clause 2 hereinabove shall be paid by way of set-off from Tanzania's claims against Uganda arising out of the Inter-Central Bank Commodity Credit Agreement dated 18the May, 1979, as amended on 18"' December, 1979.

after the set-off in Clause 3 hereinabove shall be paid by way of set-off from Tanzania's claims against Uganda arising out of the Loan Agreement specified in Clause 1 hereinabove.

quantified after reconciliation of the actual figures of the loans in the Long-term Liabilities schedule of the Mediation Agreement. The said quantified figures shall be agreed upon by exchange of letters between the two Governments.

the Mediation Agreements to the extent of Shs.385.84m (US$46.4m) being the compensation payable to Uganda by Tanzania under the said Agreement and Tanzania hereby waives claims against Uganda under the Agreements in clauses 1 to 3 and the set-off in Clause 2 above to the extent of the amounts sent -off therein and further agree as follows-

annex to the Mediation Agreement.

signature of the mediation Agreement. DONE AT KAMPALA this 24,h day of February, 1984.

C. D. MSUYA (MP) S.TEWUNGWA(M.P) Minister of Finance for the Minister of Regional Co-operation Government of the United for the Government of the Republic of Tanzania Republic of Uganda

ANNEX "D" (It)

THE UNITED REPUBLIC OF TANZANIA THE MINISTER FOR FINANCE

The Treasury, P.O. Box 91II, Dar-Es-Salaam. 27"'April, 1984. Our Ref: TYC/E/640/85 Your Ref. EA 43

Hon. S. Tewungwa (MP) Minister for Regional Co-operation for the Government of the Republic of Uganda P.O. Box 4411, Kampala, Uganda. RE: EXCHANGE OF LETTERS BETWEEN THE GOVERNMENTS OF THE REPUBLIC OF UGANDA AND THE UNITED REPUBLIC OF TANZANIA ON THE SET-OFF ARRANGEMENTS ARISING OUT OF THE DIVISION OF THE LONG-TERM LIABILITIES OF THE FORMER COMMUNITY I acknowledge receipt of your letter of 27th April, 1984, regarding the set-off arrangements arising out of the Division of the Long-term Liabilities of the former Community which reads as follows: "I refer to the Compensation Agreement between the Governments of the Republic of Uganda (hereinafter referred to as Uganda) and the United Republic of Tanzania (hereinafter referred to as "Tanzania') dated 24th February, 1984, and to the subsequent bilateral negotiations concerning the reconciliation of repayments and the ensuing set-off arrangement arising out of the Division of the

Long-term Liabilities of the former East African Community in the meditation ratio and confirm the agreed set-off arrangements between Uganda and Tanzania as hereunder;

two hundred and seven thousand, seven hundred ninety-four (US$10,207,794) being Tanzania's net overpayment and Uganda's underpayment of the Long-term Liabilities of the Community a result of the division of the said Liabilities of the Community in the mediation ratio. These are more fully set out and summarised in a schedule hereto attached and marked "A". The sum shall be settled between Uganda and Tanzania by way of set-off from the compensation amount of United States Dollars forty six million and four hundred thousand (US$ 46.4m) payable by Tanzania to Uganda.

of the compensation amount payable by Tanzania to Uganda shall be paid by way of set-off from Tanzania's claim against Uganda arising out of the Loan Agreement dated 12th December, 1979 as amended on 26th June, 1981, thereby reducing Uganda's indebtedness to Tanzania thereunder.

24th February, 1984 is deleted and shall not be included in the set-off arrangements.

their letter dated 27"' April 1984, and agree to pay the Government of Kenya on behalf of Tanzania through the Uganda/ Kenya bilateral arrangements the sum of United States Dollars one million, one hundred and three thousand, three hundred sixty six only (US$ 1,103,366) being Kenya's net overpayment and Tanzania's underpayment of

the Long-term Liabilities of the Community as a result of the division of the said Liabilities in the Mediation ratio. These are more fully set out in a schedule hereto attached and marked "B" and in the schedule to the Agreement between Tanzania and Kenya dated 27th April, 1984.

in paragraphs 1 and 4 above, the same shall be settled between Uganda and Tanzania by way of a further set-off from Uganda's indebtedness to Tanzania arising out of the Loan Agreement referred to in paragraph 2 above.

of letters between the two Governments.

Mediation Agreement to the extent of Shs. 385,84 million (shillings three hundred and eighty five million and eighty four thousand) equivalent to United States Dollars forty six million and four hundred thousand (US$46.4m) as at 30th June, 1977, being the compensation amount payable by Tanzania to Uganda and fully settled in paragraphs 1,2 and 5 above.

arising out of the net overpayments by Tanzania in respect of the Long-term Liabilities of the Community to the extent of the amounts set off under paragraphs 1 and 5 above -

shall be appropriately amended to reflect the amount the amount set-off in paragraphs 2,4(b) and

The letter correctly sets out the agreed terms of the set off arrangements between our Governments and I propose that this letter and your reply thereto shall form an Agreement between our two Governments in respect of the set off arrangements and shall constitute an amendment to clauses 1 to 6 inclusive of the Compensation Agreement dated 24th February, 1984, and shall be construed, interpreted and read together with and form an integral part thereof and shall likewise enter into force on the day of signature of the Mediation Agreement".

I am pleased to inform you that the understanding therein is acceptable to the Government of the United Republic of Tanzania and therefore agree that your said letter and this reply shall form an agreement between our two Governments in respect of the set -off

arrangements and shall constitute an amendment to the Compensation Agreement dated 24th February, 1984 and shall form an integral part thereof and shall likewise enter into force on the day of signature of the Mediation Agreement.

Hon. S. A. Kibona (M.P.), Deputy Minister for Finance for the Government of the United Republic of Tanzania.

c.c. Hon. P.C.J.O. Nyakiamo (M.P.), Minister of State, Office of the President of the Republic of Kenya.

ANKEXTURE "A

SCHEDULE OF COMPENSATION PAYMENTS BETWEEN UGANDA AND TANZANIA

Instilution/Loan Uganda to Pay Tanzania to Pay Tanzania Uganda^

A. Railways

I ~ B. Posts &. Telecommunications I

C. Harbours

D. GFS Liabilities Montreal House S 34,636.00

SUMMARY Totals ........................................................ £Stg. 388.122.52 K.Sh. 881.879.74- USS 11.297.389,79 U.S.51,757,049.00

•This set-off figure of U.S. $ 10.207,794.23 excludes K.Shs. 881,879.74 which is a future stock obligation.

Conversions in US 5 (a) £Stg. 388,122.52 US 5 667.453.44 (b) USS 11.297.389.79 11,964.843.23 US S 1,757,049.00

Net PosrnoN : .................................... US 5 10.207.794.23

ANNEXTURE'B'

Kenya to pay Tanzania to pay Tanzania Kenya

Railways and Harbours: 11

1954 £Stg.5m 4%-1973/76 .................................................................. 1 £Stg.81.665.32 1957 £Stg.8.5m 5±%-1977/83 ..................................................... £Stg.36,800.80 E.A. Government Loan .. ........................................ USS240.529.16 1961 £Stg.7.5m 6±%-1986 Exchequer Loan ............................1 £Slg.2.968 1970 £Stg. 1.0m-1995 ................................................................................ £Stg.9,454 1975 £Stg5.9m 9%-1977 Stock ..................................................... £Stg.53,280.58

Posts and Telecommunications:

C. Itoh Credit............................................................................................. JY.338,689.165 Zanzibar Government Loan .. .. ........................................ USS997.224 Marconi Communications .. ..................................................... £Stg.34.809 Standard and Chartered Bank .. .. ........................... USS349.875 Tanzania Investment .. .. ..................................................... USS846.251 Depreciation Loan .. .. ........................................ USS48.452.I7 1957 E.A.H.C. £Stg.3m 1977/83 ........................................ i £Stg53.240 Cable and Wireless .. .. .. ........................................ £Stg. 12,473.76 Crown Agents Overdraft .. .. ........................................ £Stg.116,360 I.B.R.D. 483 E.A........................................................................................... USS379.860 LB.R.D. 675 E.A........................................................................................... USS311.1O3 I.B.R.D. 914 E.A........................................................................................... USS805.163 British Exchequer Loan................................................................... £Stg.l8,36O 5|% British Exchequer Loan................................................................... £Stg.5,040

Totals .. ........................................ USS2.433.879.16 USS1.544.578.17 JY.338,689.165 £Stg.424,45L46 i

KENYA-TANZANIA SETTLEMENT ANALYSIS

Tanzania to USS pay Kenya

USS 2,433.879.16-1.544,578.17 USS (-) 889,301 (-) 889,301 £Stg. 424,451.46 £Stg. 424,451.46 4- 729,965

Japanese Yen 338.689,165 JY. 338.689.165 4-1,262,702

1,103,366

ANNEX "E"

RULES OF PROCEDURE OF THE ARBITRATION TRIBUNAL

Establishment of the Tribunal

Sub-Article 12.02 of the Mediation Agreement. The Chairman of the Tribunal shall not be a national of any of the States.

1.02 A vacancy occurring among the members of the Tribunal shall be filled within three months by the same method by which the appointment was made.

Procedures

2.01 A State wishing to institute a proceeding under the Mediation Agreement shall lodge a claim in writing to the Registrar. The claim shall name the party or parties to the proceedings, state the nature of the dispute or claim and the nature of the remedy or relief sought.

2.02 The Registrar shall upon receipt of the claim-

2.03 Any party named as respondent shall within 90 days acknowledge and file with the Registrar a Written reply to the claim

2.04 The Registrar shall upon receipt of the Written reply to the claim promptly send copies thereof to:

2.05 Every claim, pleading, application or other written instrument or document to be filed with the Registrar shall be accompanied by seven copies.

2.06 Every document prepared for use in the Tribunal shall be on foolscap paper of durable quality; only one side of the paper shall be used and a margin of not less than four centimetres shall be left on the left side of the sheet.

2.07 All documents prepared for use in the Tribunal shall be clear and easily legible and may be produced by printing, type lithography, stencil duplicating, photography, xerography, type writing or writing or any combination of theses media.

2.08 For the purposes of these Rules, the Registrar may, in consultation with the Chairman, designate any offices in Kenya and Tanzania as Sub-Registries of the Tribunal

Sessions of the Tribunal

3.01 The Registrar shall, in consultation with the Chairman, fix the date, time and venue of the sittings of the Tribunal.

3.02 The Chairman shall preside at all sittings of the Tribunal.

3.03 The Parties to the proceedings may be represented by authorised agents and/or counsel whose names and authority shall be notified to the Registrar before the commencement of the proceedings.

3.04 Every party to the proceedings shall be entitled to adduce oral or documentary evidence and/or to make oral sub-missions in support of its claim. 3.05 The Tribunal may on its own volition summon any person or persons to give evidence on any matter before it.

3.06 The Tribunal may either on its own volition or at the request of any party visit any locus for purposes of verifying any matter in dispute.

3.07 The announcement of the decision or award of the Tribunal shall be delivered in open session within forty five (45) days after both parties have made their final submissions.

3.08 The Registrar of the Tribunal shall authenticate the original text of the decision or award and shall immediately dispatch certified copies thereof to each party to the dispute.

3.09 At the written request of both parties to a proceeding, the Tribunal shall discontinue the hearing of the dispute.

Other expenses

4.01 Each party to the proceedings shall bear the costs and expenses of its own duly authorized agents, counsel and witnesses appearing before the Tribunal.

4.02 Where the Tribunal has on its own volition called witnesses or experts the costs and expenses of such witnesses shall be borne and shared equally by the parties in the proceedings.

4.03 Reimbursements of expenses incurred by witnesses and experts summoned at the initiative of the Tribunal shall be made by the Registrar who shall thereafter recoup the same from the parties to the proceedings.

Miscellaneous

5.00 Save as provided for in the Mediation Agreement and these Rules, the Tribunal may regulate its own procedure.

Cessation

6.00 The Tribunal shall cease to exist upon the full and final payment and settlement of all compensation, claims and disputes under this Agreement.

ANNEX "F"

A. RULES OFPROCEDURE OFTHE BOARD OFTRUSTEES

Establishment of the Board

1.01 The Board shall be established as provided for in Sub Article 10.03 (b) (I) of the Mediation Agreement and shall consist of three members who shall be the Governors of the Central Banks of Tanzania, Uganda and Kenya.

1.02 In the event of the absence or incapacity of a member at a meeting, he may be represented by a Deputy Governor.

1.03 Each Central Bank shall be responsible for the allowances, remuneration and expenses payable to its member.

1.04 The Governor of the host Central Bank shall provide secretarial services to the Board. The Board shall maintain records of all proceedings and documents of the Board.

Functions of the Board

2.01 The Board shall manage and administer, in the best interest of the States, all the assets of the Community vested in it by virtue of Articles 10 and 11 of the Mediation Agreement.

2.02 The Board shall determine the investment policy for all the assets under its control and may invest all or part of the assets in such a way as it shall deem fit at such interest rates and terms as shall be beneficial to the States.

2.03 The report of the Actuary to be established in accordance with Sub-Article 10.02 of the Mediation Agreement shall be submitted to the Board of Trustees who in turn shall forward it to the Ministers responsible for Finance in each State.

2.04 The Board shall cease to exist upon a final division of the Pension and Provident Fund assets and other assets and liabilities as provided for in Articles 10 and 11 of the Mediation Agreement.

Meetings of the Board

3.01 The Board shall hold its first meeting in Tanzania within one month of the signing of the Mediation Agreement and shall thereafter meet at least quarterly in the States in rotation.

3.02 The date and time of the first meeting of the Board shall be fixed by the States. At that meeting and at subsequent meetings, the Board shall fix the date, time and venue of the next meeting.

3.03 The meetings will be chaired by the Governor of the Central Bank in the host country.

3.04 The Board shall take its decisions by consensus.

3.05 The Board shall produce a quarterly report, duly signed by the members, certified copies of which shall be dispatched to the Minister responsible for Finance in each State.

5.06 Save as provided for in the Mediation Agreement and these Rules, the Board may regulate its own procedure.

Other Expenses

4.01 Costs and expenses incurred by the Board, such as telephones, telexes, transport at meetings and other administrative services shall be a charge on the income from Pension Funds.

4.02 The Board shall keep and maintain a proper record of accounts of the costs and expenses charged on the income from the Pension Funds and shall submit a half-yearly report thereon to the Minister responsible for Finance in each State.

CORRIGENDUM

B. COMPENSATION AGREEMENT BETWEEN THE GOVERNMENTS OF THE REPUBLIC OF UGANDA AND THE REPUBLIC OF KENYA IN RESPECT OF THE SHORTFALL OF NET ASSETS UNDER THE MEDIATION AGREEMENT A. AMENDMENT

(NUMBER TWO)

WHEREAS on the 31st day of March, 1984 the Governments of the Republic of Kenya and the Republic of Uganda signed a Compensation Agreement in respect of the compensation amount of the United States dollars one hundred forty- four million, eight hundred fifty-six thousand (US $ 144.856m) payable by Kenya to Uganda;

AND WHEREAS Article VIII permits the two Governments to amend the aforementioned Agreement;

AND WFIEREAS on the 28th April, 1984, the two Governments signed an Amendment (Number One) to the said Agreement; AND WFIEREAS after further mutual consultations and discussions it has become necessary to amend some Articles thereof:

NOW THEREFORE is agreed as follows: Substitutions and Amendments

1 (A) Paragraph -

1(B) Paragraph -

1 (C) Paragraph

C. PROTOCOL AMENDING CERTAIN PROVISIONS OF THE AGREEMENT FOR THE DIVISION OF ASSETS AND LIABILITIES OF THE FORMER EAST AFRICAN COMMUNITY

WHEREAS the Agreement for the Division of Assets and Liabilities of the former East African Community cited as the "East African Community Mediation Agreement, 1984", (hereinafter referred to as "the Agreement") was signed at Arusha, Tanzania on the 14"' May, 1984:

AND WHEREAS in the implementation of the said Agreement it was found necessary to amend certain provisions of the said Agreement:

AND WHEREAS at a meeting of the Heads of State of the Republic of Kenya, the United Republic of Tanzania and the Republic of Uganda on the 15th July, 1986 in Nairobi, Kenya, the Heads of State agreed to cause the Agreement to be amended: NOW THEREFORE THE STATES HAVE AGREED upon the following provisions which shall form an integral part of the Agreement:

Article 14 of the Agreement: Operations of certain institutions and services: FUTURE CO-OPERATION

14.01 The States agree that-

Council for East Africa shall operate as common services; (b) the East African Development Bank shall operate as a joint institution; and

14.02 The States agree to explore and identify further areas for future co-operation and to work out concrete arrangements for such co-operation."

15 immediately after

Amendments

15.00 This Agreement may be amended by mutual consent of the States and such amendment shall be by exchange of letters between the Heads of State of the three Governments and shall form an integral part of this Agreement."

16 to 19 respectively and the new Article 19 be amended by deleting the expression "of 18 Articles " and substituting therefor the expression "of 19 Articles"

loans) be amended by deleting the entries relating to "VC 20 Loan- BA)" and "B 707 Loan-National Bank of Kenya."

B 707 Loan - Shs. 41,682,000, 41,682, 17,506, 13,339, 10,837.

National Bank of Kenya

Done at Nairobi on the 18,h day of February in the year one thousand nine hundred and eighty seven.

IN FAITH WHEREOF the undersigned have placed their signature at the end of this protocol.

For the Government of For the Government of For the Government of the the United Republic of the Republic ofKenya Republic of Uganda Tanzania

DANIEL TOROITICH YOWERI KAGUTA ALI HASSAN MWINYI arap moi MUSEVENI

President President President

Schedule 2 Sections 2 , 6

JOINT INSTITUTION AND COMMON SERVICES

A JOINT EAST AFRICAN INSTITUTIONS East African Development Bank

B. COMMON SERVICES