Rwanda strengthens trade ties with Kenya through fuel and logistics deals

Rwanda and Kenya are strengthening economic ties through new energy and logistics agreements designed to improve trade efficiency for the landlocked nation.

Rwanda recently received a 40,000-tonne shipment of refined petroleum products via Kenya’s Kipevu Oil Terminal 2. This follows a June agreement allowing Rwanda to use Kenyan ports, pipelines, and storage facilities to import fuel independently. The Kenya Pipeline Company anticipates that fuel volumes transported through the Northern Corridor for Rwanda could rise from 60,000 cubic metres to 600,000 cubic metres annually under this arrangement.

Additionally, Rwanda has pledged to fund a logistics hub within Kenya’s Mai Mahiu Special Economic Zone (SEZ). This facility aims to streamline the movement of cargo from the Port of Mombasa through the Standard Gauge Railway to Rwanda. Rwanda’s Minister for Trade and Foreign Affairs, Dr. Usta Kayitesi, noted that the hub will facilitate the movement of over $300 million in goods currently imported from Kenya. The SEZ development includes supporting infrastructure such as worker housing, a school, and a hospital.