Trade to energy: What is driving stronger Rwanda-Kenya ties?

Rwanda and Kenya have signed 11 new MOUs (memoranda of understanding) but the latest agreements are only one part of a bilateral relationship being increasingly driven by trade, transport and logistics, energy, investment, tourism and the movement of people. The agreements were concluded during the 10th Session of the Kenya-Rwanda Joint Permanent Commission for Cooperation (JPCC), held in Nairobi from October 5-6. The meeting reviewed progress since the previous session in Kigali in 2023 and identified areas where cooperation should be accelerated. The new instruments cover mutual legal assistance in criminal matters and the transfer of sentenced persons, as well as political consultations, immigration, housing and urban development, diaspora management, water resources and irrigation, local governance, cooperation between Rwanda Investigation Bureau and Kenya National Police Service, culture and heritage, and conservation. Beyond the agreements, however, the expanding relationship is increasingly visible in the flow of goods, investments, petroleum products, tourists, professionals and cargo between the two countries. ALSO READ: Rwanda, Kenya sign 11 agreements to deepen bilateral cooperation Trade remains a major driver Trade is one of the strongest pillars of Rwanda-Kenya relations, although the balance remains heavily in Kenya’s favour. Rwanda imported goods worth more than $398 million from Kenya in 2025, while its exports to Kenya stood at $5.3 million, according to Minister of State for Foreign Affairs Usta Kaitesi. Kaitesi said the figures demonstrate the strength of commercial ties, but also underline the opportunity for Rwanda to expand its exports to the Kenyan market. Kenya’s Principal Secretary for Foreign Affairs Korir Sing’oei said the two countries should continue addressing barriers to trade, facilitating the movement of goods and services and strengthening business-to-business links. “Trade remains an important pillar of our economic relationship,” he said, adding that there was “considerable scope to deepen and diversify trade” between the two countries. Both countries also cooperate through the East African Community, where regional integration and the movement of goods, services, people and capital remain central to their economic relationship. Transport and logistics deepen interdependence For Rwanda, Kenya’s importance extends beyond bilateral trade. As a landlocked country, Rwanda relies heavily on the Northern Corridor for access to the Port of Mombasa, making Kenya an important partner in the movement of imports and exports. In January, the two countries signed a memorandum of understanding formalising the Kenya Ports Authority liaison office in Kigali. The office is intended to provide a direct link between Rwandan stakeholders and the port authority and improve coordination of cargo moving through the Northern Corridor. ALSO READ: Rwanda, Kenya eye greater two-way trade, investment Kenya has also allocated land to Rwanda in Mombasa and Naivasha to support logistics operations. These arrangements make transport and logistics one of the most important practical links between the two economies, particularly for Rwanda’s access to international markets. Energy emerges as another key link The bilateral relationship has also expanded into energy. In September, Rwanda received its first bulk shipment of refined petroleum products through the Port of Mombasa. A 40,000-tonne cargo arrived at the port on September 29 under agreements signed by the two countries in June covering the importation, transportation and storage of refined petroleum products. Rwandan High Commissioner to Kenya Ernest Rwamucyo said the arrangement would strengthen Rwanda’s energy security, improve supply-chain efficiency and reduce logistics costs. “This new route through the Northern Corridor will help strengthen Rwanda’s energy security, make our supply chain more efficient and reduce logistics costs,” he said. The arrangement adds energy security to a growing list of areas in which Rwanda and Kenya increasingly depend on closer coordination. Investment flows in both directions Kenyan financial institutions operating in Rwanda include KCB, Equity Bank, NCBA and I&M Bank. Other Kenyan-linked businesses include Pembe Flour Mills, Safintra, Athi River Mining, Serena Hotels and Hemingways Hospitality. Their investments span banking, insurance, manufacturing, construction, hospitality and other services. Rwamucyo said Kenyan companies have established themselves in banking, construction, insurance, education, agribusiness, tourism and hospitality, while Rwandan businesses are also expanding their interests in Kenya. “The confidence is, of course, increasingly reciprocal,” Sing’oei said. He cited Rwanda’s acquisition of a 1.05 per cent stake in Kenya Pipeline Company through its initial public offering as an example of investment moving in the opposite direction. ALSO READ: Rwanda-Kenya fuel deal to help shield economy from global shocks - Minister The two countries now want to increase two-way investment, particularly in infrastructure, manufacturing, tourism, energy, agro-processing and services. Air links, tourism and movement of people Air connectivity is also reinforcing the expanding relationship. Kenya Airways operates two daily flights between Nairobi and Kigali, while RwandAir resumed flights between Kigali and Mombasa in December 2025 after a six-year break. The RwandAir service operates four times a week, with a stop in Zanzibar, giving Rwandans easier access to Kenya’s coastal tourism market while creating another route for Kenyan visitors travelling to Rwanda. The relationship is also supported by thousands of people living and working across the two countries. Kenya’s High Commissioner to Rwanda Janet Mwawasi Oben said about 10,000 Kenyans live in Rwanda, of whom around 4,000 are registered with the Kenyan High Commission. The community includes professionals and businesspeople working across different sectors. Rwamucyo also noted that thousands of Kenyans live and work in Rwanda, while thousands of Rwandans have made Kenya their home. “Their daily contributions strengthen the bonds between us in ways no agreement can,” he said. Education and skills development form another layer of cooperation. The JPCC framework covers education, agriculture, health, ICT, youth affairs, gender, diplomatic training and public-service capacity development. Recent engagements involving the Kenya Foreign Service Academy and Kenya School of Government have also opened discussions on diplomatic training, leadership development and public-service capacity building. A relationship built over decades The latest agreements build on a diplomatic relationship dating back to 1965. Kenya opened its mission in Rwanda in 1986, temporarily closed it in 1994 and reopened the High Commission in 2001. The two countries signed their first General Agreement of Cooperation in 1979, establishing the basis for the Joint Permanent Commission framework through which cooperation has expanded into air transport, education, agriculture, water, security, governance, immigration, justice and other areas. The latest JPCC meeting also acknowledged that some earlier commitments had not progressed at the same pace. The joint communiqué called on responsible institutions to accelerate implementation of outstanding commitments and pending bilateral instruments. An updated implementation matrix will guide follow-up and monitoring. The two countries also agreed to strengthen private-sector engagement and expand cooperation in geothermal energy, housing and urban development, infrastructure and transport logistics. Taken together, the relationship is increasingly being driven not simply by diplomatic agreements, but by practical economic interests — from trade and investment to petroleum supply, transport corridors, tourism and the movement of people. The next test will be how quickly those expanding links translate into more balanced trade, stronger investment flows, lower transport costs, greater energy security and wider economic opportunities for both countries.

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Trade to energy: What is driving stronger Rwanda-Kenya ties?