Kenya is targeting a tenfold increase in fuel traffic to Rwanda through the Northern Corridor under a new deal that strengthens Mombasa’s role as a regional energy hub.
The first 40,000-tonne consignment under the arrangement arrived at the Kenya Pipeline Company’s Kipevu Oil Terminal 2 on Tuesday, marking the start of the new route for Rwanda’s bulk petroleum imports.
Energy and Petroleum CS Opiyo Wandayi said the projected growth would boost petroleum volumes moving through Kenya and strengthen the country’s position as a logistics and energy transit hub in the region.
“This framework is projected to grow the volume of petroleum products moving through our Northern Corridor to Rwanda tenfold over the coming years. That is a vote of confidence, not just in a pipeline or a port, but in Kenya as a nation, in our institutions, our regulatory environment and our ability to deliver on our word,” Wandayi said.
The deal could 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.
The framework extends beyond handling the initial cargo, as higher volumes of Rwandan fuel imports could translate into increased demand for storage, transportation, terminal handling and other logistics services along the Northern Corridor, strengthening the route’s role in regional trade.
Wandayi said the agreement “cements” Kenya’s position as an energy and logistics transit hub for the East African Community, linking the arrangement to wider regional integration under the EAC and the African Continental Free Trade Area.
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.
Rwanda Infrastructure Minister of State Armand Zingiro said recent events had demonstrated how instability outside Rwanda’s borders could quickly affect fuel availability and prices.
“Our government’s response has been deliberate, to diversify our import routes and reduce our exposure to any single corridor or supplier,” Zingiro said.
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.
That 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 while providing additional traffic for Mombasa and KPC’s pipeline and storage facilities.
The framework is anchored in a Memorandum of Understanding signed by Kenya’s Ministry of Energy and Petroleum and Rwanda’s Ministry of Trade and Industry on June 29, 2026.
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.
Zingiro said the government-to-government framework would 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.
Uganda already relies heavily on Kenya’s port and pipeline infrastructure for its fuel imports, meaning the new Rwanda arrangement could further expand the regional market served through Mombasa and the Northern Corridor.
While the Rwanda and Uganda arrangements are separate, both reinforce Kenya’s ambition to capture a larger share of East Africa’s petroleum transit business by leveraging Mombasa, Kipevu and the Kenya Pipeline network.
