Cabinet approves major reforms in infrastructure, land and diplomacy

President William Ruto chairing a past Cabinet meeting at State House, Nairobi. [PCS]

The Cabinet has approved a framework for infrastructure projects pricing to curb inflated costs, promote transparency, and ensure value for money in public investments.

The framework seeks to eliminate irregular and inconsistent pricing practices in government projects by establishing a data-driven system for cost determination. 

"Key milestones already achieved include the creation of sectoral pricing models, cost derivation criteria, and proposals for a National Infrastructure Pricing Database (NIPD)," the Cabinet brief read in part.

At the same time, the Cabinet approved the waiver of interest and penalties on Sh12.3 billion in outstanding land settlement loans to ease the burden on low-income settlers and advance the Bottom-Up Economic Transformation Agenda.

The waiver, which covers 520 settlement schemes in 26 counties, follows recommendations by the Land Settlement Fund Board of Trustees. 

Beneficiaries will now be able to obtain title deeds, use them as collateral, and regularise long-standing arrears. Implementation will follow the Public Finance Management Act, with a 12-month moratorium on principal balance clearance.

The Cabinet also sanctioned the dualling of the 23.5-kilometre Muthaiga–Kiambu–Ndumberi road to ease congestion and improve mobility between Nairobi and Kiambu counties.

"The project will include bypasses, loops, access roads, and non-motorised transport lanes to enhance safety and capacity," the brief added. 

To strengthen environmental conservation, the Cabinet approved the establishment of the Nairobi National Park–Athi–Kapiti Wildlife Corridor to protect critical migratory routes and dispersal areas. 

The project will reconnect Nairobi National Park to surrounding conservancies in Machakos and Kajiado, with works set to begin in the 2026/2027 financial year.

In support of devolution, the Cabinet approved the Public Finance Management (Amendment) Bill, 2025, which will split the County Governments Additional Allocations Bill into two laws to speed up the disbursement of funds to counties and improve service delivery.

On the diplomatic front, the Cabinet endorsed the establishment of a Kenyan Embassy to the Vatican City to enhance engagement with the Holy See on peace, humanitarian, and development initiatives. 

The move will also strengthen cooperation with Catholic development agencies operating in Kenya’s education and health sectors.

Additionally, new embassies will be opened in Copenhagen, Denmark, and Hanoi, Vietnam, as part of Kenya’s efforts to expand its diplomatic footprint and deepen trade and bilateral relations globally.