President Uhuru Kenyatta on Thursday signed a deal with the Ethiopian government to build an oil pipeline through Kenya.

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According to the agreement between Kenyatta and Ethiopian Prime Minster Hailemariam Desalegn, the proposed pipeline will run from Addis Ababa to the Lamu port.

President Kenyatta said that the pipeline deal will boost the progress of the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) launched in 2012.

The latest deal comes after Uganda ignored Kenya for Tanzania in another pipeline project.

Yoweri Museveni's government claimed it did not trust Kenya with the security of their pipeline and also said that it would be expensive to build the facility through Kenya.

Uganda took the grounds and said that Kenyan land issue had a problem.

Days later, Rwanda opted out of the Standard Gauge Railway and chose Tanzania, citing the same reasons as Uganda for the move.

The move by Uganda and Rwanda had cast doubt in the position of Kenya as the East African economic powerhouse.