President William Ruto has taken steps to enhance Kenya’s energy security through dialogue with the oil-producing nation Azerbaijan amid mounting pressure on the government concerning recent fuel price increases.
On Sunday, May 17, Ruto confirmed he held bilateral discussions with Azerbaijani President Ilham Aliyev at the Baku Olympic Stadium during the World Urban Forum in Baku.
The talks covered cooperation in the oil and gas sectors, as well as renewable energy initiatives.
“Our discussions concentrated on establishing partnerships in the oil and gas sector, investments to expand our affordable housing program, and renewable energy collaborations to assist our goal of producing 10,000MW of electricity,” Ruto reported following the meeting.
These talks between Kenya and Azerbaijan follow concerning fuel price escalations, with diesel per liter while petrol exceeded Ksh214.
According to the Energy and Petroleum Regulatory Authority (EPRA), the rising fuel costs are primarily caused by disruptions in global oil supply chains stemming from instability around the Strait of Hormuz and broader Middle East conflicts.
Notably, Kenya remains particularly susceptible to adverse impacts on major oil shipping routes as it imports all its refined petroleum products.
Among the key outcomes of the discussions between Ruto and the Azerbaijani Head of State was the proposed oil refinery project intended to serve the East African region. At the time of this article’s publication, billionaire businessman Aliko Dangote had strongly favored Kenya as the location for the upcoming refinery due to the nation’s economic strength.
Discussions with Azerbaijan are especially significant because the country is recognized as one of the world’s key regional energy powers with substantial expertise in oil production, refining and export infrastructure.
The oil-rich nation possesses extensive reserves in the Caspian Sea and has established a global reputation through its extensive petroleum export network, supplying European and international markets.
Although not as large as traditional oil giants such as Saudi Arabia and Russia, Azerbaijan maintains strategic influence in the global energy market due to its robust oil and gas production capacity and its contribution to diversifying global energy supplies.