NAIROBI, Kenya – The Cabinet has approved a new National Energy Policy, setting the stage for wide-ranging reforms aimed at expanding access to affordable, reliable and sustainable energy while unlocking private investment in the sector.
In a dispatch issued after a meeting chaired by President William Ruto on Monday, December 15, the government said the policy is designed to address long-standing bottlenecks that have slowed energy development, including low electricity access, over-reliance on traditional biomass, frequent power outages and increasing climate-related risks.
The policy prioritises the expansion of renewable energy, stronger private sector participation and the development of climate-resilient energy infrastructure to support economic growth and social development.
“In support of energy expansion, the Cabinet approved the National Energy Policy to guide sector reforms and accelerate access to modern, reliable and sustainable energy,” the Cabinet said.
At the same meeting, Cabinet endorsed a revised National Petroleum Policy, updating a framework that has largely remained unchanged since 2004.
The new petroleum policy aligns the sector with the Constitution and takes into account recent oil discoveries, evolving global energy markets and the country’s long-term energy security needs.
According to the government, the policy seeks to strengthen governance and regulatory oversight, attract investment and promote value addition across the petroleum value chain.
It also places emphasis on increasing the uptake of liquefied petroleum gas (LPG) to reduce dependence on traditional fuels, while improving revenue management and environmental safeguards in upstream, midstream and downstream operations.
Beyond the energy sector, Cabinet noted progress in clearing long-standing payment arrears in the roads sector.
All pending bills for certified works and accrued interest in the Ministry of Roads up to December 31, 2024, have now been fully settled, with total payments amounting to Sh123 billion.
The government said the move has restored contractor confidence and allowed stalled projects to resume.
Since April 2025, the settlement programme has unlocked or accelerated 875 road contracts nationwide, easing pressure in the construction industry and supporting infrastructure delivery.
Cabinet also approved the rollout of second-generation smart driving licences through a public–private partnership.
The new system will integrate smart licences with an instant fines platform, a mobile licence wallet, and a driver merit and demerit points framework—an initiative the government says will enhance road safety, improve compliance and modernise driver licensing and enforcement.
