East Africa’s refinery search expands as Kenya explores alternatives beyond Dangote

• Kenya is seeking to strengthen energy ties with Azerbaijan to diversify investment sources for its proposed East African oil refinery project.
• President Ruto met with Azerbaijani officials and SOCAR executives to discuss cooperation in oil, gas, renewable energy, and infrastructure.
• Kenya aims to use SOCAR’s expertise to support its goal of generating 10,000MW of electricity in the next decade.
• Azerbaijan's involvement may provide Kenya with government-to-government cooperation, flexible financing, and technical know-how.

President William Ruto held talks with Azerbaijani President Ilham Aliyev and executives from the State Oil Company of the Republic of Azerbaijan (SOCAR) during the World Urban Forum in Baku, where both sides discussed cooperation in oil, gas, renewable energy, and infrastructure development.

In a post on X, Ruto said 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.”

Ruto also revealed that the talks explored “the possibility of SOCAR investing in the proposed East African oil refinery,” reinforcing Kenya’s ambition to position itself as a future regional energy and refining hub.

ADVERTISEMENT

He added that Kenya aims to leverage SOCAR’s expertise in gas exploration and renewable energy to support the country’s ambition of generating 10,000MW of electricity within the next decade.

Kenya broadens refinery investment search

A central focus of the discussions was Azerbaijan’s potential involvement in Kenya’s proposed regional refinery project, which Nairobi hopes will strengthen fuel security and refining capacity across East Africa.

Protesters burn tyres on a road in Nairobi during demonstrations against rising fuel prices in Kenya. [AFP\Luis Tato] BI Africa

The renewed outreach comes shortly after Kenya engaged with billionaire Aliko Dangote over possible collaboration tied to refinery development and fuel supply infrastructure in the region.

ADVERTISEMENT

However, Kenya’s recent engagement with SOCAR suggests Nairobi is keeping multiple strategic options open as it evaluates potential investors and refinery models.

Other East African countries, including Tanzania and Uganda, are also pursuing similar ambitions as the region seeks to expand domestic refining capacity.

Analysts say Azerbaijan presents an attractive alternative because of SOCAR’s extensive state-backed experience in refining, pipeline infrastructure, and energy trading across Eurasia and the Caspian region.

Unlike private-sector-led refinery models, Azerbaijan’s approach could offer Kenya deeper government-to-government cooperation, financing flexibility, and technical expertise in building integrated energy systems.

Kenya’s renewed urgency around refinery partnerships also comes at a time when the country is facing mounting domestic pressure over fuel costs, which continue to weigh heavily on transport, food prices, and broader inflation.

ADVERTISEMENT

As a net importer of refined petroleum products, Kenya remains highly exposed to global oil price fluctuations and currency pressures, with periodic spikes in pump prices triggering public frustration and increasing operating costs for businesses.