After being upstaged by the recent Uganda - Tanzania crude oil pipeline deal, Kenya and Ethiopia have agreed to construct a crude oil pipeline from the coastal town of Lamu to Addis Ababa.

The oil pipeline is one of several joint infrastructure projects to integrate the region under the Lamu Port-Southern Sudan-Ethiopian Transport (Lappset) corridor. Ethiopia is also considering the export of natural gas following recent vast discoveries in the Ogaden Basin.

President Uhuru Kenyatta made the pact with Ethiopian Prime Minister Hailemariam Desalegn in Nairobi.

Kenya is set to start construction of the Euro 1.9 billion (Sh 210 billion) crude oil pipeline to be completed in 2021, according to Ministry of Energy and Petroleum.

Overall, Kenya and Ethiopia entered into five pacts, including cooperation in sports, cross-border livestock, health and education.