Big Win: Kenya Pipeline Company to Handle Rwanda Fuel Imports Under New Deal

Kenya Pipeline Company will now handle Rwanda’s fuel imports following a new agreement between the two countries. The deal marks a significant shift in regional fuel logistics.

The agreement is expected to increase fuel volumes transiting through Kenya from 42,000 to over 500,000 cubic metres annually. This represents a major expansion in transit business for KPC.

Rwanda has chosen Kenya’s corridor, including the Port of Mombasa and the pipeline network, over Tanzania’s route. Officials cited efficiency and infrastructure reliability as key reasons.

The first cargo under the new arrangement is expected to arrive at Mombasa in September. Rwanda’s National Energy Company will manage the imports under the government-to-government framework.

KPC will earn revenue from storage and transportation services. The extended storage period of up to 90 days for Rwandan products is part of the incentives offered under the deal.

The move strengthens Kenya’s position as the primary fuel transit hub for the East African region. It reverses earlier shifts by Rwanda toward the Tanzanian corridor.

Private oil marketers in Kenya have expressed concerns over the G-to-G arrangement reducing their market share. However, the transit fees and port revenues are seen as net gains for the country.

The deal includes a Memorandum of Understanding, a Tripartite Agreement, and a Transport and Storage Agreement. These documents formalise the operational framework between the two nations.

KPC has previously handled fuel for Uganda and South Sudan. Adding Rwanda expands its regional role and supports long-term revenue growth.

The increased volumes are expected to improve utilisation of Kenya’s pipeline and storage infrastructure. This comes at a time when KPC is seeking to maximise earnings from its assets.