Kenya is strengthening its energy relationship with Azerbaijan as Nairobi searches for additional partners for its planned East African oil refinery project, highlighting a wider effort to diversify investment sources amid rising regional competition in refining and fuel infrastructure.
President William Ruto met with Azerbaijani President Ilham Aliyev and officials from the State Oil Company of the Republic of Azerbaijan during the World Urban Forum in Baku, where discussions focused on cooperation in oil, gas, renewable energy, and infrastructure development.
In a post shared on X, Ruto stated that Kenya was “strengthening cooperation with Azerbaijan, through the State Oil Company of the Republic of Azerbaijan (SOCAR), in the energy sector, particularly in oil and gas, and renewable energy, as part of Kenya’s drive to attract strategic investment to expand energy generation.”
The Kenyan president also disclosed that the discussions covered “the possibility of SOCAR investing in the proposed East African oil refinery,” underlining Kenya’s goal of becoming a future regional centre for energy and refining operations.
Ruto further noted that Kenya intends to tap into SOCAR’s expertise in gas exploration and renewable energy as part of the country’s target to generate 10,000MW of electricity within the next decade.
Kenya widens search for refinery investors
A key issue during the talks was Azerbaijan’s potential participation in Kenya’s proposed regional refinery project, which Nairobi hopes will improve fuel security and refining capacity throughout East Africa.
The latest engagement follows recent discussions between Kenya and billionaire Aliko Dangote regarding possible collaboration on refinery development and fuel supply infrastructure within the region.
However, Kenya’s outreach to SOCAR indicates that the government is exploring several strategic alternatives while assessing possible investors and refinery structures.
Other East African nations, including Tanzania and Uganda, are similarly pursuing plans to strengthen local refining capacity as the region seeks to reduce dependence on imported refined petroleum products.
Industry analysts say Azerbaijan presents a compelling option because SOCAR possesses extensive state-backed expertise in refining, pipeline systems, and energy trading across Eurasia and the Caspian region.
Unlike refinery projects driven mainly by private investors, Azerbaijan’s model could provide Kenya with stronger government-to-government cooperation, more flexible financing arrangements, and technical support for integrated energy infrastructure development.
Kenya’s intensified search for refinery partnerships also comes as the country faces increasing domestic pressure over high fuel prices, which continue to affect transportation costs, food prices, and overall inflation.
As a country heavily dependent on imported refined fuel, Kenya remains vulnerable to global oil market fluctuations and exchange rate pressures, with recurring increases in pump prices often fuelling public dissatisfaction and raising operating costs for businesses.