Kenya and Rwanda have signed a framework agreement aimed at increasing fuel traffic through the Northern Corridor, with a projected tenfold growth in petroleum volumes moving through Kenya. The deal, signed on June 29, 2026, is expected to boost Kenya's position as a logistics and energy transit hub in the region. The first 40,000-tonne consignment under the arrangement arrived at the Kenya Pipeline Company's Kipevu Oil Terminal 2, marking the start of the new route for Rwanda's bulk petroleum imports.
The agreement was hailed by Energy and Petroleum CS Opiyo Wandayi as a vote of confidence in Kenya's institutions, regulatory environment, and ability to deliver on its word. Wandayi said the framework would grow the volume of petroleum products moving through the Northern Corridor to Rwanda tenfold over the coming years. This development is expected to provide a significant boost to the use of Kenya's petroleum infrastructure, including the Port of Mombasa, Kipevu Oil Terminal, and the pipeline network operated by the Kenya Pipeline Company.
Rwanda's Infrastructure Minister of State Armand Zingiro said the government had deliberately sought to diversify its import routes and reduce its exposure to disruptions along any single corridor or from any single supplier. Recent events had demonstrated how instability outside Rwanda's borders could quickly affect fuel availability and prices. The new arrangement with Kenya is part of a broader diversification strategy, as Rwanda has also opened a new route through Tanzania's Port of Tanga, giving Kigali alternative channels for importing petroleum products.
The framework agreement is anchored in a Memorandum of Understanding signed by Kenya's Ministry of Energy and Petroleum and Rwanda's Ministry of Trade and Industry. It is further supported by a tripartite agreement involving the two ministries and the Rwanda National Energy Company, as well as a Transport and Storage Agreement between KPC and RNEC. The latter covers the transportation, storage, scheduling, and handling of Rwanda's petroleum imports through Kenya's pipeline and terminal infrastructure.
The deal is expected to secure a larger share of Rwanda's fuel imports for Kenya's Northern Corridor infrastructure, providing additional traffic for Mombasa and KPC's pipeline and storage facilities. This development creates an emerging contest between Kenya and Tanzania for Rwanda's transit business, with the efficiency, cost, and reliability of each corridor likely to influence future volumes. Securing a larger share of Rwanda's fuel imports is likely to strengthen the commercial case for Kenya's Northern Corridor infrastructure.
The agreement also comes as East African countries compete to capture a larger share of regional transit trade by offering landlocked economies alternative routes to international markets. Rwanda, which imports all its petroleum products, is seeking to reduce its exposure to disruptions along any single corridor or from any single supplier. The government-to-government framework will give Rwanda greater control over how its fuel is procured, transported, and stored, replacing arrangements that had largely been commercial.
The projected tenfold increase, if realised, would make Rwanda an increasingly important customer for Kenya's petroleum logistics infrastructure and reinforce Mombasa's role in supplying the energy needs of landlocked countries in the region. The deal places Kenya's Northern Corridor at the centre of Rwanda's efforts to secure more resilient fuel supplies while giving Nairobi an opportunity to expand its role as an energy transit hub in East Africa.
Key points
- The deal is expected to increase fuel traffic through the Northern Corridor tenfold.
- The agreement strengthens Mombasa's role as a regional energy hub.
- The framework is part of Rwanda's strategy to diversify its import routes and reduce exposure to disruptions.
