The chief executive of Absa Bank Kenya has called on East African countries to work together to address the economic fallout from the ongoing global energy crisis, warning that individual national responses may not be sufficient to protect the region from rising fuel costs and supply disruptions. The appeal comes as higher oil prices, geopolitical tensions, and shipping disruptions continue to place pressure on economies that depend heavily on imported energy.
Abdi Mohamed, Chief Executive Officer of Absa Bank Kenya, said East African nations need to adopt a coordinated approach to improve energy security and reduce their vulnerability to external shocks. According to Mohamed, recent disruptions linked to tensions around the Strait of Hormuz have demonstrated how events occurring thousands of kilometers away can significantly affect fuel prices, inflation, and economic growth across East Africa.
The Strait of Hormuz is one of the world’s most important energy shipping routes, handling approximately one-fifth of global oil shipments. Any disruption to traffic through the waterway can trigger immediate increases in crude oil prices, raising transportation and production costs for countries that rely on imported petroleum products. East African economies, including Kenya, Uganda, Rwanda, and Tanzania, are particularly exposed because they import most of their fuel requirements from international markets.
Mohamed emphasized that regional cooperation should focus on shared infrastructure investments, coordinated energy planning, and stronger integration of energy markets. He argued that “thinking regionally” would allow countries to pool resources, improve efficiency, and create more resilient supply chains capable of withstanding external shocks. Rather than each country pursuing separate strategies, he suggested that joint projects could lower long-term costs and improve energy security for the entire region.
The energy shock has arrived at a difficult moment for Kenya’s economy. The country had recently experienced a period of relative stability, with inflation moderating and economic growth showing signs of recovery. However, rising global oil prices now threaten to reverse some of these gains. Higher fuel costs increase transportation expenses, raise food prices, and place additional pressure on businesses and consumers. Kenya, as a net importer of petroleum products, faces direct exposure to every increase in global crude prices.
The economic consequences extend beyond fuel prices. Rising energy costs can weaken currencies, increase government spending pressures, and contribute to inflation. In Kenya, policymakers have already taken steps to cushion consumers, including temporary reductions in taxes on petroleum products and requests for financial assistance from international institutions. The country has sought rapid support from the World Bank to help manage the economic effects of higher energy prices and to maintain financial stability.
Experts note that East Africa’s economies are closely interconnected. Kenya’s ports, banking sector, and transport infrastructure play a central role in supporting trade throughout the region. Economic difficulties in Kenya can therefore have ripple effects across neighboring countries, affecting supply chains, investment flows, and consumer prices. This interdependence strengthens the case for a coordinated regional response rather than isolated national policies.
Mohamed’s proposal aligns with broader international discussions about how countries should respond to the current energy crisis. The International Energy Agency has reported that governments worldwide are implementing measures to support consumers, conserve energy, and diversify energy sources in response to market disruptions caused by conflicts in the Middle East. Many experts argue that long-term resilience requires investment in alternative energy sources, stronger regional cooperation, and reduced dependence on imported fossil fuels.
For East Africa, the current crisis highlights the importance of accelerating investments in renewable energy, electricity interconnections, and regional infrastructure projects. The region possesses significant potential in geothermal, solar, wind, and hydroelectric power. Greater collaboration could allow countries to share resources and develop integrated energy systems that reduce vulnerability to international market volatility.
The call by Absa Kenya’s CEO therefore goes beyond managing a temporary price spike. It represents a broader appeal for structural reforms and deeper regional integration. As global energy markets remain uncertain and geopolitical risks continue to threaten supply chains, East African countries face increasing pressure to work together to build more resilient economies. A coordinated regional strategy, Mohamed argues, could help stabilize costs, protect consumers, and strengthen the region’s long-term economic security.