Kenya Deal with Ethiopia to Build Oil Pipeline

Kenya to build its own oil pipeline to transport crude oilENERGY BRIEF

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.

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About the Author

- Shmuel Yosef Agnon is a Senior Writer and Editor at the Strategic Intelligence Service. Specialize in writing intelligence reports, geopolitics, military intelligence and crime reports analysis. Agnon holds a Bachelor of Arts in mass media and journalism and a master's degree in international media relations from Winchester, University, England.

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