Kenya expects a proposed oil refinery backed by Africa's richest man, Aliko Dangote, to create about 60,000 jobs as the country pushes to establish itself as East Africa's leading energy hub.

President William Ruto said on Friday that he had reached an agreement with the Nigerian billionaire to move ahead with the refinery in the coastal county of Lamu, describing it as a project that will serve markets across East and Central Africa while creating thousands of employment opportunities for young Kenyans.

"Kenya will now build the East African refinery here in Lamu, where we will need 60,000 young people to work," Ruto said during the launch of the second phase of the government's Nyota youth empowerment programme.

He added that the refinery would supply refined petroleum products to Kenya, Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of the Congo.

"I spoke with investor Aliko Dangote, and we agreed that the refinery will not only serve Kenya, but also Ethiopia, South Sudan, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of Congo, while creating employment opportunities for our youth," he said.

The proposed 700,000-barrel-per-day refinery would become East Africa's largest if completed, significantly expanding the region's refining capacity and reducing dependence on imported petroleum products.

The announcement follows Dangote Industries' decision to site the refinery in Kenya after considering both Kenya and Tanzania for the investment. The company has previously said the project would be located in Lamu because of its strategic deep-water port and access to regional transport corridors.

Lamu is also home to the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, one of Africa's largest infrastructure projects, designed to connect Kenya's coast with Ethiopia, South Sudan and other neighbouring countries through roads, railways, pipelines and ports.

The refinery is expected to strengthen the corridor's role as a regional trade and energy gateway.

Although Dangote Industries has not disclosed the project's final investment cost, company executives have previously indicated that it could rank among the group's largest investments outside Nigeria.

Construction is expected to begin once engineering, financing and regulatory approvals are completed.

The government has been seeking large-scale private investment to boost manufacturing, create jobs and reduce fuel import costs while positioning the country as a regional logistics and industrial hub. If completed, the refinery would not only strengthen Kenya's domestic energy security but could also reshape fuel supply across East and Central Africa by providing refined products to several landlocked economies that currently rely heavily on imports from overseas refineries.