Kenya's President William Ruto said on Saturday he and the Ugandan President Yoweri Museveni would help mediate a dispute between Ethiopia and Somalia, which was threatening the stability of the region.

Landlocked Ethiopia, which has thousands of troops in Somalia to fight al Qaeda-linked insurgents, has fallen out with the Mogadishu government over its plans to build a port in the breakaway region of Somaliland, in exchange for possible recognition of its sovereignty.

Somaliland has struggled to gain international recognition despite governing itself and enjoying comparative peace and stability since declaring independence in 1991.

The spat has drawn Somalia closer to Egypt, which has quarrelled with Ethiopia for years over Addis Ababa's construction of a vast hydro dam on the Nile River, and Eritrea, another of Ethiopia's foes.

Somaliland has struggled to gain international recognition despite governing itself and enjoying comparative peace and stability since declaring independence in 1991.

"The security of Somalia ... contributes significantly to the stability of our region, and the environment for investors, business people and entrepreneurs to thrive," Ruto told a news conference.

Several attempts to resolve the feud in Ankara, Turkey, failed to make a breakthrough.

Ethiopia's government and foreign affairs spokespeople did not immediately respond to requests for comment. Somalia's foreign minister could not immediately be reached by Reuters.