Kenya and Ethiopia are set to finalize a deal that will see the two countries build a refined oil pipeline from Kenya’s north coast to the Ethiopian capital.
Kenya and Ethiopia signed a memorandum of understanding (MoU) that will see the two countries jointly build the pipeline after Uganda switched to build theirs with Tanzania.
Kenya is seeking to open up a new port on its north coast at Lamu. There are plans to build an economic corridor with transport and other links to Ethiopia, South Sudan and Uganda.
In a joint communiqué, the two leaders (President Uhuru and Ethiopia’s Prime Minister Hailemariam Desalegn) stressed about their commitment to seen through the agreements are finalized on the development and operation of a product oil pipeline from Lamu Port to Addis Ababa by the end of 2016.
Ethiopia has a bigger population but has a smaller economy than that of Kenya, the pipeline, new railway and highway expected to open up a huge market for the land-locked country.
Kenya and Ethiopia are cited as Africa’s fastest expanding economies
According to Kenya’s Energy Cabinet Secretary Charles Keter, plans are in place to complete the $2.1 billion crude oil pipeline by 2021.