The governments of Kenya and Malawi have sealed Memorandum of Understanding (MoU) to enhance cooperation in the petroleum sector. The agreement followed discussions initiated during the United Nations General Assembly in New York in September 2024, involving the presidents of Kenya and Malawi.
The MoU establishes a government-to-government arrangement (G-to-G) to streamline and strengthen the importation and supply of refined petroleum products. It aims to ensure a stable supply of these products to support the economic development and energy security of both countries. Senior officials from both nations contributed to shaping the partnership, reflecting a mutual commitment to sustainable development.
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Energy diversity
For Kenya, the partnership aligns with its broader goal of diversifying its supply sources for refined petroleum. In 2022, Kenya was the 50th largest importer of refined petroleum globally, spending $5.41 billion, with primary suppliers being the United Arab Emirates, Saudi Arabia, India, Netherlands, and Oman.
Malawi, through this partnership, may gain improved access to competitively priced petroleum products, bolstering its energy sector. The MoU is valid for five years, with provisions for renewal or termination based on mutual agreement.
Both parties envision collaborative efforts to optimize the logistics, costs, and supply chain of refined petroleum imports. This agreement not only reflects Kenya’s and Malawi’s ambitions to strengthen their respective energy sectors but also signals a move toward fostering regional partnerships in Africa for shared economic and energy resilience.
Kenya’s energy mix predominantly consists of green energy with geothermal, hydro, wind, and solar accounting for 85% to 90% generation. Renewable sources are expected to replace existing thermal plants as Kenya moves towards a fully green grid by 2030. On the other hand, Malawi’s energy supply is largely dependent on biomass, with the majority of the country’s energy coming from burning wood and charcoal.
