The Cabinet has approved the National Energy Policy, a strategic move aimed at guiding sector reforms and accelerating access to modern, reliable, and sustainable energy nationwide.
According to a Cabinet statement released on Monday, December 1, the policy addresses persistent challenges that have hindered energy development, including low electricity access, heavy reliance on traditional biomass, unreliable power supply, limited private sector investment, and increasing climate-related risks.
The policy outlines measures to expand renewable energy, strengthen private sector participation, and promote 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 statement read.
During the same session, Cabinet also endorsed the National Petroleum Policy, updating a framework that had remained largely unchanged since 2004.
The revised policy aligns the petroleum sector with the Constitution and reflects recent developments such as new oil discoveries and shifts in global energy markets.
The petroleum policy aims to enhance governance and regulatory oversight, attract investment, boost national energy security, and promote value addition within the sector.
It also encourages the increased uptake of liquefied petroleum gas (LPG) to reduce dependence on traditional fuels, improve revenue management, and safeguard the environment across upstream, midstream, and downstream operations.
Beyond energy reforms, Cabinet confirmed the settlement of outstanding road sector obligations, with all pending bills for certified works and accrued interest up to December 31, 2024, fully paid. The total disbursement of Sh123 billion has restored contractor confidence and enabled stalled projects to resume, accelerating 875 road contracts since April 2025.
In addition, the government 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, aiming to enhance road safety, improve compliance, and modernise driver licensing and enforcement.