The Cabinet, during a meeting chaired by President William Ruto at State House in Nairobi on Tuesday, approved a restructuring of Kenya Power’s balance sheet with an aim to restore profitability.


The new plan focuses on enhancing the company’s financial sustainability, particularly by addressing loan balances and the liquidity gap.

In line with the Kenya Kwanza Bottom-Up Economic Transformation Agenda, the composition of Kenya Power’s Board will be adjusted to reflect its shareholding.
The Cabinet also endorsed proposed amendments to the Water Act of 2016, which introduces Public Private Partnerships (PPPs) in the development of the water sector.


This move aligns with the ambitious plan of the Kenya Kwanza administration to invest in water harvesting and storage for domestic use, livestock, and irrigation.

The objective is to alleviate water challenges caused by climate change through the construction of at least 100 large dams through PPPs, 1000 medium dams, and 3000 small dams.

These changes in the Water Act clarify the roles of Water Works Development Agencies as bulk water service providers.

They also establish a licensing framework for these agencies and align the Water Act 2016 with the Public Private Partnership Act 2021.

While the ongoing rains have provided relief to drought-affected areas of Kenya, the Cabinet recognises the need for locally-driven strategies and sustained resource mobilisation to support long-term resilience building.

The meeting also agreed to continue supporting the restocking of livestock to aid recovery among impoverished households in arid regions.

Additionally, the Cabinet acknowledged the importance of strengthening the implementation of drought risk reduction strategies to ensure sustainable natural resource management.

The Cabinet has further approved the Kenya policy on Public Participation, which establishes the overarching standard for effective citizen engagement in development and governance, in compliance with constitutional requirements.

In its efforts to expand Kenya’s presence on the international stage, the Cabinet has reviewed and approved a memorandum of understanding between the Government of Kenya and the World Health Organisation regarding the establishment of a regional emergency hub in Nairobi.

The hub will place Kenya in a favorable position to respond to health-related emergencies while creating employment opportunities and local markets for medical supplies.

The Cabinet also noted that previous disputes concerning the property have been resolved through stakeholder engagement.

To fulfill its international obligations, the nation’s apex body has approved the Meteorological Bill and Meteorological Policy.

These approvals mark a new era and transformation of the Kenya Meteorological Department into Kenya Meteorological Services, enabling compliance with international instruments such as the Chicago Convention of 1944 and the African Ministerial Conference on Meteorology (AMCOMET) of 2015.


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