BUSINESS

Kenya, Rwanda Sign Landmark Petroleum Import Deals

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Energy and Petroleum Cabinet Secretary Opiyo Wandayi signs the deals in the company of his Rwandan counterpart Antoine Marie Kajangwe and other senior government officials.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi signs the deals in the company of his Rwandan counterpart Antoine Marie Kajangwe and other senior government officials. [Photo/Opiyo Wandayi/Facebook]
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Kenya and Rwanda have signed three key agreements that will allow Kigali to import bulk refined petroleum products through the Port of Mombasa and the Northern Corridor under a government-to-government (G2G) arrangement, in a move expected to strengthen regional energy security and boost economic integration.

The agreements—a Memorandum of Understanding (MoU), a Tripartite Agreement (TPA) and a Transport and Storage Agreement (TSA)—were signed at KASNEB Tower in Nairobi on Monday in the presence of senior government officials from both countries.

Speaking during the signing ceremony, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the agreements mark a major milestone in East African cooperation by opening Kenya’s petroleum infrastructure to Rwanda.

“Today, Kenya and Rwanda sign three documents fully opening the Northern Corridor to Rwanda for the import of bulk refined petroleum products under their G2G arrangement. Kenya is putting its pipeline, its port and its people at the service of Rwanda’s energy security,” Wandayi said.

The Cabinet Secretary said the partnership stems from bilateral discussions held in Kigali in November 2024, when Kenya and Rwanda agreed on a roadmap for cooperation in the petroleum sector following a mission commissioned by President William Ruto.

He noted that within 18 months, Rwanda had established its National Energy Company (RNEC) in Kenya and secured an import, export and wholesale petroleum products licence from the Energy and Petroleum Regulatory Authority (EPRA), paving the way for implementation of the agreement.

Wandayi commended the joint technical committee comprising officials from Kenya’s Ministry of Energy and Petroleum, Kenya Pipeline Company (KPC), EPRA and Rwanda’s Ministry of Trade and Industry for developing the legal, commercial and operational framework underpinning the partnership.

He acknowledged that the agreements had undergone extensive review and approval by the relevant government agencies in both countries before being finalized.

According to the Cabinet Secretary, the framework guarantees Rwanda reliable long-term access to petroleum products through Kenya’s transport and storage infrastructure while reinforcing the country’s position as the region’s energy and logistics hub.

“The obligation is simple and firm: Kenya will provide a transit environment to guarantee security of supply of bulk refined petroleum products to Rwanda for the long haul,” he said.

Under the arrangement, the volume of petroleum products transiting through the Northern Corridor to Rwanda is projected to increase more than tenfold—from approximately 50,000 cubic metres annually to more than 500,000 cubic metres.

Wandayi said the increased volumes would generate greater business for the Port of Mombasa, Kenya Pipeline Company and other logistics players while advancing regional economic integration within the East African Community and the Great Lakes region.

He expressed confidence that implementation would begin immediately, with Rwanda’s first petroleum cargo expected to arrive at the Port of Mombasa in September 2026.

“We will receive that cargo with equal anticipation and celebration,” he said.

The Cabinet Secretary also congratulated Rwanda’s Minister of Trade and Industry, Antoine Marie Kajangwe, on his recent appointment as minister, praising the collaboration between the two governments in bringing the agreements to fruition.

The signing is expected to enhance regional energy trade, strengthen Kenya’s role as a strategic petroleum transit hub and deepen economic cooperation between the two neighbouring countries.

Read: CS Opiyo Wandayi Says Without Subsidies Fuel Prices Could Have Hit KSh270 Per Litre

>>> Fuel Prices: Rwanda Overtakes Kenya as East Africa’s Most Expensive Petrol Market

Written by
BT Reporter

editor [at] businesstoday.co.ke

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