By: Ecofin agency

Kenyan President William Ruto held talks with Azerbaijani state oil company SOCAR in Baku on May 17 on potential partnerships in oil and gas exploration and renewable energy, as Kenya grapples with mounting cost-of-living pressures.

Meanwhile, successive fuel price increases have triggered transport strikes and protests in several major cities. In Nairobi, taxi and truck drivers blocked key roads to protest what they called unsustainable operating costs. Clashes with security forces left four people dead and more than 30 injured, according to Interior Minister Kipchumba Murkomen.

Import Dependence and Diversification Strategy

Kenyan authorities have partly blamed the rise in fuel prices on tensions between the United States and Iran, which they say are disrupting global oil markets. Officials also pointed to instability around the Strait of Hormuz, a strategic chokepoint for global oil shipments.

Kenya depends heavily on imported refined petroleum products from the Middle East and is seeking to reduce its exposure to external supply shocks. Discussions with SOCAR also covered possible involvement in an East African oil refinery project aimed at expanding regional refining capacity and reducing reliance on imported fuel.

Beyond oil, Nairobi is also seeking to diversify its energy mix. The government aims to install 10,000 megawatts of power capacity over the next decade, drawing on natural gas and renewable energy sources.

A Social Crisis Overshadowing Long-Term Plans

These long-term energy ambitions are being overshadowed by a worsening social crisis. Rising fuel prices are driving up transport and food costs, further straining households already facing persistent inflation. In Mombasa, the country’s main port city, the transport strike has raised concerns about supply chain disruptions.

Negotiations between the government and transport sector representatives have so far failed to produce an agreement on fare reductions. Finance Minister John Mbadi said additional support measures would be considered after the president returns to Kenya.

For Nairobi, the challenge is now to contain mounting social tensions while pursuing an energy strategy designed to reduce the country’s long-term reliance on imported fuel.