Kenya and Ethiopia Forge Trade Partnership Through Lamu Port Agreement

In a landmark move aimed at strengthening regional trade, President William Ruto announced that Kenya and Ethiopia have agreed to use the Port of Lamu for the importation of goods to landlocked Ethiopia.

This new agreement is set to boost the economy of both nations, enhance job creation, and cement Lamu Port’s role as a key player in East Africa’s trade network.

Speaking during the launch of a solar access project in Lamu, President Ruto revealed that the agreement with Ethiopia would allow the country to use Lamu as a major gateway for its imports, bypassing the constraints of its current reliance on ports in neighboring countries.

“This deal marks a significant step in enhancing regional cooperation and trade,” President Ruto said. “By utilizing Lamu Port, we open new doors for Ethiopia and foster economic growth in this region.”

The move is part of the larger vision for the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor project, which is designed to connect Kenya, South Sudan, and Ethiopia through improved infrastructure, creating a direct and more efficient trade route.

Lamu, which has long been underdeveloped in terms of international trade traffic, is now poised to become a crucial hub for goods flowing into East Africa.
The announcement also coincided with the completion of Lamu Port’s first three modern berths, which are now ready for use. These developments come as part of Kenya’s broader plan to expand its port facilities to accommodate growing regional trade.

Beyond the economic benefits, the deal also addresses social concerns, with President Ruto affirming that the government will allocate Ksh. 1.7 billion to compensate local fisherfolk who were displaced during the construction of the port.

This new agreement between Kenya and Ethiopia is expected to significantly enhance trade flows, increase regional integration, and create thousands of new jobs, solidifying Lamu Port as a vital asset in Africa’s growing trade infrastructure.

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