Tanzania–Kenya Gas Pipeline Proposal

Tanzania–Kenya Gas Pipeline Proposal Signals Potential Regional Demand Growth

5th May 2026

What It Means for Regional Gas Demand

A new cross-border energy initiative between Tanzania and Kenya could mark a significant step toward regional gas market expansion, with implications for long-term demand across East Africa.

During a recent state visit to Dar es Salaam, President Samia Suluhu Hassan and President William Ruto oversaw the signing of multiple bilateral agreements, including a proposal to explore the development of a natural gas pipeline linking Dar es Salaam to Mombasa.

The agreement, signed by senior energy officials from both countries, initiates a joint feasibility study to assess the technical, economic, and environmental viability of the project. While still at an early stage, the proposal reflects a broader strategic shift toward regional energy integration.

A Strategic Move Toward Regional Energy Integration

If progressed, the pipeline would enable Tanzania to export natural gas to Kenya’s coastal and industrial regions, supporting energy supply diversification and potentially reducing long-term energy costs.

The project forms part of a wider effort to strengthen economic cooperation between the two countries, with both governments signalling a commitment to removing trade barriers and improving cross-border infrastructure.

Alongside the pipeline proposal, agreements were also reached to expand electricity trading between the two nations, aiming to improve grid stability and energy reliability across the region.

Growing Trade and Investment Potential

Bilateral trade between Tanzania and Kenya reached approximately $860 million in 2025, with both governments indicating that improved trade efficiency could significantly increase this figure.

Officials have suggested that addressing regulatory and logistical constraints could unlock substantial additional investment over the coming years, particularly in infrastructure and energy-related sectors.

Why This Matters for the Gas Market

For the broader East African energy landscape, initiatives such as this highlight a clear direction of travel:

Increasing regional cooperation
Expansion of cross-border energy infrastructure
Growing demand for reliable gas supply

For companies with exposure to Tanzanian gas developments, including projects within the Ruvuma Basin, the potential for export-led demand growth adds an additional dimension to the long-term outlook.

Longer-Term Outlook

While the pipeline remains subject to feasibility outcomes and regulatory approvals, it reflects a growing recognition of natural gas as a key component of East Africa’s energy transition.

Infrastructure-led demand, combined with domestic consumption growth, continues to shape the evolving investment case in the region.

Key Takeaway

The proposed Tanzania–Kenya gas pipeline is not yet a confirmed development, but it represents a meaningful signal of intent toward regional market expansion.

If realised, it could contribute to:

Increased demand for Tanzanian gas
Greater regional energy integration
Expanded infrastructure supporting long-term supply growth

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