Kenya has signed a multi-billion deal with Ethiopia to construct a crude oil pipeline to run from the coastal town of Lamu to Addis Abab. The deal comes a few months after Kenya was snubbed by Uganda in favour of a pipeline deal with Tanzania.

The new pipeline, to be launched in December, will move from Nakuru to Addis Abab. The deal was announced yesterday as President Uhuru Kenyatta and Ethiopian Prime Minister Hailemariam Dessalegn signed a memorandum of understanding in the cooperation on oil and gas sector among four other trade agreements.

Kenya is set to start construction of the Sh210 billion crude oil pipeline to be completed in 2021, according to Ministry of Energy and Petroleum.