President Samia Suluhu Hassan and Kenyan President William Ruto on Monday witnessed the signing of a landmark energy agreement, headlined by a proposal for a natural gas pipeline connecting Dar es Salaam to Mombasa.

The energy pact was one of eight bilateral agreements signed at State House in Dar es Salaam during Ruto’s two-day state visit. 

The deal, signed by Tanzanian Energy Minister Deogratius Ndejembi and Kenyan Cabinet Secretary for Energy Opiyo Wandayi, authorizes a joint feasibility study to determine the technical, economic, and environmental viability of the cross-border pipeline.

Officials said the project aims to stabilize energy costs and bolster industrial expansion along the East African coast. 

If successful, the pipeline will serve as a cornerstone for regional energy integration, allowing Tanzania to export its vast natural gas reserves to Kenya’s industrial hubs.

“Tanzania and Kenya are interdependent economies,” Ruto told reporters. “We must move from administrative constraints toward trade facilitation.”

In addition to the pipeline study, the energy agreement initiates cross-border electricity trading to improve grid reliability in both nations. The broader package of accords also covers maritime transport, railway cooperation, and mutual legal assistance.

The diplomatic push comes as both leaders pledge to eliminate chronic trade friction. Hassan and Ruto directed their respective cabinets to clear all outstanding non-tariff barriers by the end of May 2026.

Data shared during the visit showed that bilateral trade reached $860 million in 2025. Ruto noted that the figure likely would have exceeded $1 billion if not for persistent bureaucratic bottlenecks. 

He projected that removing these hurdles could attract $500 million in new cross-border investment within three years.

Addressing the Tanzania-Kenya Business Forum following the signing, Hassan emphasized that infrastructure projects like the gas pipeline and road corridors are essential for unlocking the region's economic potential.

"Tanzania will continue working with Kenya to harmonize laws and regulatory systems," Hassan said. "Infrastructure remains the key to unlocking investment."

The leaders also reviewed plans for power interconnection and railway links through northern Tanzania, signaling a shift toward long-term integrated infrastructure.