Kenya Wins Multi-Billion Fuel Transit Deal as Rwanda Switches to Mombasa
Kenya has secured a major diplomatic and economic win after Rwanda officially selected the Port of Mombasa and the Kenya Pipeline Company (KPC) network to facilitate its new government-to-government (G2G) fuel importation programme, marking a significant shift in regional trade and energy logistics.
The breakthrough follows the signing of three landmark agreements between Kenya and Rwanda, opening the Northern Corridor to Rwanda’s fuel imports and effectively reducing the country’s reliance on Tanzania’s Central Corridor. The move positions Kenya as the preferred regional gateway for petroleum products destined for Kigali.
Under the agreement, Kenya will provide secure transit services for refined petroleum products imported by Rwanda under its new G2G arrangement. The volumes of fuel transported through Kenya are expected to increase more than tenfold, rising from approximately 50,000 cubic metres annually to over 500,000 cubic metres.
For years, Tanzania handled the majority of Rwanda’s fuel imports, while Kenya accounted for only about 30 percent of the market. However, Kigali’s decision to adopt a government-to-government procurement model, supported by Oman’s OQ Trading, has significantly altered the regional energy landscape and strengthened Kenya’s strategic position.
The Rwanda National Petroleum Corporation has already obtained the necessary operating licence from the Energy and Petroleum Regulatory Authority (EPRA), paving the way for implementation of the new arrangement.
The deal is expected to generate substantial revenues for the Kenya Pipeline Company through increased storage, transportation and transit services. It also reinforces Kenya’s growing role as a regional energy hub, with KPC already transporting petroleum products to neighbouring Uganda.
While the agreement presents a major opportunity for Kenya’s energy sector and logistics industry, local oil marketing companies that previously supplied fuel to Rwanda are expected to face reduced business under the new procurement framework.
The first fuel shipment under the new partnership is expected to arrive at the Port of Mombasa in September 2026, marking the beginning of a new chapter in regional energy cooperation between Kenya and Rwanda.
The agreement is also expected to improve fuel supply security, streamline logistics, enhance price competitiveness and strengthen regional trade integration, further cementing the Northern Corridor as East Africa’s preferred fuel transit route.
