Cabinet approves policies to boost Kenya's industrialization

Kiswahili

Kenya's Cabinet has greenlit a new National Energy Policy and an updated National Petroleum Policy to drive the country's industrial ambitions. These measures aim to enhance energy access, attract investments, and promote sustainable development. Additionally, a Livestock Value Chain Support Project was approved to improve dairy farming productivity.

On December 15, 2025, Kenya's Cabinet took significant steps toward industrial transformation by approving key policies aligned with the Bottom-Up Economic Transformation Agenda (BETA). The new National Energy Policy seeks to reform the sector, ensuring modern, reliable, and sustainable energy access as the nation targets middle-income status. It emphasizes renewable energy sources in line with Sustainable Development Goals (SDGs), fostering private sector involvement and climate-resilient growth.

This framework addresses persistent issues, including low electricity access rates, heavy dependence on traditional biomass, supply unreliability, insufficient investments, and vulnerability to climate change. Officials highlighted its role in overcoming these barriers to support broader economic goals.

Complementing this, the updated National Petroleum Policy revises the 2004 version to bolster governance, draw investments, and secure energy supplies. It aligns with constitutional provisions and recent oil finds in northern Kenya, while promoting value addition in petroleum products, increased liquefied petroleum gas (LPG) adoption, better revenue handling, and environmental protection.

In parallel, the Cabinet endorsed the Livestock Value Chain Support Project, focusing on the dairy sector to elevate productivity, minimize post-harvest losses, and increase farmer incomes. The initiative will enhance genetics, feeds and fodder production, cold-chain facilities, and farmer cooperatives.

These approvals advance the Kenya Kwanza Manifesto's investment-driven growth strategy. They follow President William Ruto's recent comparison of Kenya's development path to Singapore's rapid industrialization model.

Makala yanayohusiana

Illustration of President William Ruto addressing parliament with cheering lawmakers, unveiling Kenya's Ksh5 trillion transformation plan in investments for agriculture, energy, and infrastructure.
Picha iliyoundwa na AI

Ruto aahidi mpango wa Ksh5 trilioni katika hotuba ya taifa

Imeripotiwa na AI Picha iliyoundwa na AI

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Baraza la Mawaziri la Kenya limethibitisha kuanzishwa kwa Mfuko wa Miundombinu wa Taifa wenye thamani ya Ksh5 trilioni ili kuharakisha ukuaji wa uchumi. Mfuko huu, pamoja na Mfuko wa Mali ya Taifa, utatumia mbinu za ubunifu za ufadhili kama mauzo ya mali za umma na akiba ya taifa ili kufadhili miradi muhimu. Hatua hii inafuata ahadi ya Rais Ruto ya kufanya mfuko huo uwe na athari katika siku zijazo.

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