Kenya has scored a massive diplomatic and economic victory in the race to control East Africa’s transit corridors.
In a major policy shift, Rwanda has bypassed Tanzania’s Central Corridor, choosing the Port of Mombasa and the Kenya Pipeline network to handle its new multi-billion shilling Government-to-Government fuel importation program.
The agreements comprise a memorandum of understanding, a tripartite agreement and a transport and storage agreement, setting up a government-to-government framework.
Rwanda said the partnership would boost security and continuity of petroleum supply, free up logistical bottlenecks and make import flows more predictable.
The deal supports Rwanda’s strategy to diversify import routes, strengthen fuel security and make petroleum products available for economic growth and industrial development.
Designated institutions such as Rwanda National Energy Company and Kenya Pipeline Company (KPC) will begin implementing the deal, working with both countries’ government agencies, Rwanda said.
Landlocked Rwanda imports all its petroleum products overland through two main ports, Dar es Salaam in Tanzania and Mombasa in Kenya.
The new arrangement aims to move a greater share of Rwanda’s fuel imports to the Mombasa route, using Kenyan storage and pipeline infrastructure.
KPC said the first cargo covered by the deal is set to arrive at Mombasa between September 4 and September 6 to launch operations under the partnership.
