The Cabinet has approved a new National Energy Policy aimed at guiding reforms in the energy sector and speeding up access to modern, reliable and sustainable power across the country.
The policy is intended to address long-standing gaps in electricity supply while supporting economic growth and social development through a stronger and more resilient energy system.
In a Cabinet dispatch released on Monday, December 1, the government said the policy responds to challenges that have for years slowed energy development. These include low access to electricity, heavy dependence on traditional biomass, unreliable power supply, limited private investment and rising climate-related risks that threaten energy infrastructure.
The policy outlines steps to expand renewable energy, strengthen the role of the private sector and promote energy systems that can withstand climate shocks. The government said these measures are meant to support both economic activity and household access to clean and dependable power.
“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 dispatch read.
During the same meeting, the Cabinet also approved the National Petroleum Policy, updating a framework that has largely remained in place since 2004. The revised policy aligns the petroleum sector with the Constitution and takes into account recent changes, including oil discoveries and shifts in global energy markets.
According to the dispatch, the petroleum policy is designed to improve governance and regulatory oversight, attract investment, strengthen national energy security and promote value addition within the sector. It also places focus on increasing the use of liquefied petroleum gas to reduce reliance on traditional fuels, improve revenue management and ensure environmental protection across upstream, midstream and downstream operations.
Beyond energy matters, the Cabinet noted progress in clearing outstanding obligations in the roads sector. The government said 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 payments have restored confidence among contractors and allowed stalled projects to resume. It added that the settlement programme has unlocked or sped up 875 road contracts since April 2025, easing pressure in the construction sector and supporting infrastructure delivery across the country.
The Cabinet led by President William Ruto also approved the rollout of second-generation smart driving licences through a public private partnership. The new system will link smart licences to an instant fines platform, a mobile licence wallet and a driver merit and demerit points framework.
The government said the initiative is aimed at improving road safety, boosting compliance with traffic rules and modernising driver licensing and enforcement across the country.
