Kenya and Ethiopia sign oil pipeline deal as they commit to enhance ties

President Uhuru Kenyatta (right) and First Lady Margaret Kenyatta (second right) receive Ethiopian Prime Minister Hailemariam Desalegn and First Lady Roman Tesfaye at State House, Nairobi. [Photo: PSCU]

Kenya and Ethiopia have agreed to build an oil pipeline from Lamu Port to Addis Ababa by the end of this year.

The development came several months after a deal between Kenya and Uganda for a joint pipeline and railway collapsed, shattering hopes of connecting Mombasa to Kampala, Kigali and Juba.

Uganda and Rwanda opted out of the pipeline and railway project from Mombasa, Malaba, Tororo, Kampala, to Rwanda, which would have positioned Kenya as the regional hub.

President Uhuru Kenyatta has in the past downplayed Uganda's decision to work with Tanzania, through Tanga Port, saying it should not be seen as a betrayal but nations complementing each other instead of being in competition.

Yesterday Uhuru and Ethiopian Prime Minister Hailemariam Desalegn signed a deal, which will connect Kenya with her landlocked neighbour -which has a population of over 100 million people.

Railway Commission

After the leaders met it was decided that the two countries also establish a Joint Railway Commission, and Project Co-ordination Committee to help in the implementation of the bilateral agreement signed in Nairobi in March, 2012.

They made the announcements in a joint communique after they held bilateral talks at State House, Nairobi, where they also signed five other deals.

The leaders said agreed to expedite the construction and operationalisation of the Moyale one stop border post.

The leaders' indicated their commitment to fast-track The Lamu Port Southern Sudan-Ethiopia Transport (Lapsset) project. It is expected to be completed by 2020 at a total cost of Sh2.5 trillion.

The commencement of Lapsset is envisaged to create a second corridor in the country which will open up northern Kenya where a series of projects like the resort city of Isiolo are to be implemented.

Kenya will spend six per cent of its gross domestic product or 16 per cent of annual budget on the project.

"We are committed to finalise an agreement on the development and operation of a product oil pipeline," read the leaders communication.

According to the two, the joint infrastructural programme, will include construction of a 122km road that is part of the project linking the two countries from Turbi to Moyale and another 121km from Merille to Marsabit, which will eventually connect Mombasa to Addis Ababa, Ethiopia.

"We have discussed a wide range of issues and agreed to deepen our partnership. The Lapsset corridor project will bring our people together and open opportunities," Uhuru said.

"We have agreed to fast track the Special Status Agreement signed in 2012 that seeks to eliminate recent introduction of work permits for citizens in both countries."

The agreements signed by the two leaders will enhance co-operation in oil and gas, health, sports, cross border co-operation in animal health and sanitary measure and education.

The duo also stressed their commitment to work together in immigration, information and media, customs, trade and investments.

The two countries will also collaborate in civil aviation, energy, transport, environment, arts and culture, gender and social development, science and technology, co-operatives, housing and urban development and public service.

"The signing of agreements between our two countries on areas of co-operation today is a historic day for us as we formally inaugurate the Kenya/Ethiopia Bi-National Commission," said Desalegn.

"Kenya and Ethiopia have a responsibility to pacify peace and stability of the Eastern Africa regional. The African continent depends on us," he added.

They pledged to support the African position during the 14th United Nations Conference on Trade and Development in Nairobi and Tokyo Conference on Africa's Development VI Summit.

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