In a landmark Cabinet meeting held at the State Lodge in Kakamega, President William Ruto set the stage for a transformative year, outlining a series of bold economic, governance, and policy reforms. The meeting, the first of 2025, underscored the administration’s commitment to national unity, economic revival, and streamlining government operations.
A Cabinet of Unity and Reform
Breaking political barriers, President Ruto reaffirmed his commitment to inclusive governance by appointing Cabinet Secretaries from outside his Kenya Kwanza Alliance, incorporating figures from Azimio, including ODM and Jubilee leaders. This unprecedented move, he said, was aimed at fostering national cohesion and development-driven leadership.
“We have an opportunity to put political differences aside and focus on what truly matters—delivering progress for all Kenyans,” Ruto emphasized, calling on leaders to capitalize on this broad-based government to drive national transformation.
State Corporations Overhaul: Leaner, Efficient Governance
A major highlight of the meeting was the approval of sweeping reforms in State Corporations. After a National Treasury review of 271 agencies, the Cabinet sanctioned:
✅ Dissolution of 9 State Corporations, transferring their functions to ministries or other entities.
✅ Merging of 42 corporations into 20, eliminating redundancy and enhancing efficiency.
✅ Restructuring 6 corporations to better align with their mandates.
✅ Privatization or dissolution of 16 corporations currently funded by taxpayers.
✅ Declassification of all professional organizations listed as State Corporations, cutting government dependence.
These measures aim to curb waste, streamline services, and reduce reliance on the Exchequer, ensuring government efficiency and accountability.
Agricultural Breakthroughs & Economic Growth
The Cabinet celebrated major milestones in the agricultural sector, with maize and sugar production hitting record highs—832,000 tonnes harvested in 2024, the highest since Kenya’s independence. Similar growth was recorded in tea, coffee, and dairy farming, reaffirming Ruto’s commitment to food security and economic empowerment.
Additionally, the Plant Protection Bill, 2023, was approved, marking a crucial step in safeguarding crop health and boosting agricultural productivity.
Tourism & Open Skies Policy: Visa-Free Travel for Africa
In a groundbreaking move to promote regional integration and tourism, the Cabinet approved the introduction of an Electronic Travel Authorization (eTA) system, allowing visa-free travel for all African countries, except Somalia and Libya due to security concerns.
The new system will:
✅ Grant African visitors a two-month stay in Kenya.
✅ Extend EAC citizens’ stay to six months under free movement protocols.
✅ Implement an Advanced Passenger Information (API) system to strengthen security and ease processing.
✅ Offer expedited approvals within 72 hours for travelers.
This initiative aligns with Africa’s push for seamless intra-continental travel, opening doors for business, tourism, and investment opportunities.
Infrastructure and MSME Credit Boost
The Cabinet also approved several strategic projects, including:
✅ Expansion of last-mile electricity and fiber optic networks, ensuring nationwide digital and energy access.
✅ Revitalization of Rift Valley Textiles (Rivatex) through strategic partnerships.
✅ Launch of the Kenya Credit Guarantee Company, providing affordable loans to MSMEs, which contribute 30% to Kenya’s GDP and employ 16 million people.
Additionally, the Public Finance Management (Amendment) Bill, 2024, was greenlit to enhance county allocations, eliminating duplication and inefficiencies.
A Year of Transformation
As Kenya embarks on 2025, President Ruto’s administration is poised to deliver tangible change, leveraging inclusive governance, economic empowerment, and institutional efficiency. The first Cabinet meeting of the year set a bold precedent—one that promises to reshape Kenya’s governance and economic landscape.
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