John Mwangi
Nairobi.
Kenya’s Cabinet on Tuesday approved a far-reaching package of reforms aimed at curbing inflated infrastructure costs, easing financial pressures on land settlers, modernizing key roads, protecting wildlife corridors, streamlining county funding, and expanding the country’s diplomatic footprint.
According to a State House dispatch, the measures are part of President William Ruto’s drive to restore fiscal discipline, ensure value for money in public projects, and accelerate national development under the Bottom-Up Economic Transformation Agenda.
At the heart of the approvals is a Comprehensive Framework for Infrastructure Projects Pricing, designed to end “irregular, inconsistent, and costly practices” that have long plagued public works.
The new system will replace precedent-based estimates with a data-driven First Principles Approach (FPA)—a global best practice used in countries such as the United Kingdom, Australia, and Singapore. The approach is expected to reduce cost overruns by up to 25 percent.
A new National Infrastructure Pricing Database (NIPD) will be established to guide project costing and ensure transparency. It will be overseen by the Chief of Staff and Head of Public Service through a multi-agency technical team. “Despite significant investments over the past two decades, the country continues to experience cost variability and over runs… The framework seeks to eliminate these irregularities and guarantee accountability in every shilling spent,” the Cabinet dispatch stated.
In a major boost for rural livelihoods, Cabinet approved a full waiver of interest and penalties on outstanding land settlement loans worth KSh12.3 billion across 520 schemes in 26 counties. The waiver, recommended by the Land Settlement Fund Board of Trustees, will benefit thousands of low-income farmers struggling with decades-old debts amid declining agricultural productivity.
Beneficiaries will now receive title deeds and have a 12-month moratorium to clear principal balances under the Public Finance Management Act. The move aims to “resolve historical land injustices, enhance agricultural productivity, and unlock land-based economic value,” according to the statement.
Cabinet also approved the dualling of the 23.5-kilometre Muthaiga–Kiambu–Ndumberi Road, a key commuter corridor linking Nairobi and Kiambu counties. The project will expand the congested two-lane highway into a modern dual carriageway featuring bypasses, loops, access roads, non-motorised transport lanes, and commuter facilities. It will serve densely populated areas including Muthaiga, Runda, Ridgeways, and Kiambu Town.
“The corridor currently experiences chronic traffic congestion, particularly during peak hours,” the dispatch noted, describing the upgrade as central to modernizing Nairobi’s metropolitan network in line with Vision 2030 and the UN Sustainable Development Goals.
In a landmark conservation step, Cabinet approved the implementation of the Nairobi National Park–Athi–Kapiti Wildlife Corridor, a three-year initiative beginning in the 2026/27 financial year. The project will reconnect fragmented habitats and reduce human–wildlife conflicts by securing migratory routes for zebras, wildebeests, and gazelles through land acquisition, wildlife-friendly fencing, and construction of underpasses and overpasses.
Originating from a 2023 presidential directive, the project will transfer some public land, including sections of the Export Processing Zone, to the Kenya Wildlife Service. Funding will come from partnerships, nature bonds, and debt-for-nature swaps. The corridor, officials said, “will reconnect the park to surrounding conservancies and restore vital migratory pathways,” reinforcing Kenya’s Vision 2030 commitment to biodiversity conservation.
Cabinet also approved the Public Finance Management (Amendment) Bill, 2025, which will split the County Governments Additional Allocations Bill into two separate laws—one for national revenue shares and another for loans and grants. The reform seeks to eliminate recurrent delays in the disbursement of county funds that have slowed service delivery and local development. The amendment “will enhance efficiency in public finance management and strengthen devolution through timely transfers,” the dispatch said.
To expand Kenya’s international presence, Cabinet approved the establishment of new embassies in Vatican City, Copenhagen (Denmark), and Hanoi (Vietnam). The Vatican mission will deepen collaboration with the Holy See in peacebuilding, education, healthcare, and climate action, leveraging the vast Catholic network that operates over 7,700 schools and 500 health facilities in Kenya.
“These missions will strengthen Kenya’s global partnerships, moral diplomacy, and economic cooperation,” the statement said.
The Cabinet’s sweeping decisions underscore a coordinated push to balance fiscal prudence, social equity, environmental stewardship, and international engagement as Kenya navigates its post-pandemic recovery.
Implementation timelines and detailed frameworks are expected to be unveiled in the coming weeks.