The exit of Uganda and Rwanda from an oil pipeline deal with Kenya is not lost yet.
Kenya has now turned its attention to the north eyeing Ethiopia for development of the pipeline.
The two countries signed a deal for an oil pipeline that will run from Lamu to Addis Ababa under the Lapsset project.
President Uhuru Kenyatta and Ethiopian Prime Minister Hailemariam Desalegn signed the pact during bilateral talks at State House, Nairobi, on Thursday.
During a joint press briefing, President Kenyatta said Kenya is working closely with Ethiopia on the Lapsset project.
Kenya and Ethiopia also agreed to strengthen their strategic alliance.
“We are both committed to actualising the provisions of the sustainable peace agreement we signed last year, which will reduce the vulnerabilities faced by border communities,” President Kenyatta said.
The two countries have also been working together to stabilise and bring peace to Somalia and the region.
Prime minister Hailemariam said Ethiopia considers Kenya a strategic partner and a natural friend given the similarities between the two countries.
He said Kenya and Ethiopia are key to the stability of the region and Africa.
“Kenya and Ethiopia are the pillars of the region and we have to work together to stabilise the region,” he said.
Witnessing the pact were Deputy President William Ruto and Ethiopia ministers.
The pact is on oil, gas, health, sports, cross border cooperation in animal health and sanitary measures, and education.
State House will tonight host a state banquet in honour of the visiting Prime Minister.