Kenya has signed an agreement with South Sudan that will allow for the construction of an oil pipeline to the port of Lamu. The deal was signed Tuesday by Energy Minister Kiraitu Murungi and Sudanese Minister for Petroleum and Mines, Stephen Dhieu. The signing was witnessed by South Sudanese President Salva Kiir, Prime Minister Raila Odinga, Foreign Affairs Minister Moses Wetangula and Public Service Minister Dalmas Otieno. “The pipeline will be developed through Kenyan territory and will be built and owned by South Sudan. The two countries will negotiate and agree on transit fees for the oil pipeline,” Said a statement from the Prime Minister’s office. A major project to construct a morden port in Lamu is underway which will include construction of road and railway networks linking Lamu to South Sudan and Ethopia. The project, dubbed Lamu Port-South Sudan-Ethiopia Transport Corridor (LAPSSET) is to serve as the entry point of goods for Ethiopia and South Sudan. It is estimated to cost $23 billion of which the Lamu port is earmarked to cost $5.3 billion.

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