NAIROBI, Kenya Oct 9 – The Cabinet has approved the settlement of 28,726 verified Government pending bills worth Sh23.74 billion, alongside major investments in healthcare, energy, roads, water, education and the turnaround of Kenya Airways.
The pending bills, all valued at Sh50 million and below, represent 98 per cent of the 29,257 claims recommended for settlement. Some suppliers and contractors have been waiting for payment since 2005, according to a dispatch from State House.
The decision follows a review by the Pending Bills Verification Committee, which received 115,617 claims worth Sh664.8 billion. After verification, 29,257 claims valued at Sh155.34 billion were recommended for settlement.
The National Treasury will oversee implementation, with priority given to micro, small and medium enterprises, particularly those owned by women, young people and persons with disabilities. Bills exceeding Sh50 million will be settled progressively.
Major hospital expansion
In healthcare, Cabinet approved a major hospital infrastructure programme that will include the construction of a 2,000-bed Moi Teaching and Referral Hospital and a 1,000-bed Level Six hospital in Mombasa.
It also approved the expansion of 13 Level Five hospitals by an additional 300 beds each in Mandera, Marsabit, Turkana, Kilifi, Embu, Nakuru, Laikipia, Migori, Nyamira, Baringo, Bomet, Narok and Kisii counties.
Cabinet also endorsed a KSh8 billion healthcare programme with France to establish and equip specialised head and neck surgical units at Kenyatta National Hospital, Moi Teaching and Referral Hospital and the University of Nairobi Dental Hospital.
The programme will also strengthen cancer treatment and train 5,000 community health workers.
Sh2.47 trillion energy investment plan
Cabinet adopted the Kenya National Energy Compact, which seeks to mobilise approximately KSh2.47 trillion, equivalent to USD19 billion, in investment and connect an additional 5.1 million households to electricity by 2030.
The Government says the plan will expand electricity access to underserved communities while supporting enterprise growth, industrial development and employment.
Cabinet also approved a USD8.8 million electric cooking programme to support the uptake of 100,000 electric cooking appliances in Nairobi, Kiambu, Machakos and Kajiado counties.
Three major road corridors cleared
Cabinet cleared three strategic road corridors under the Roads for Rural Economic Development Programme.
They include the 253-kilometre South Rift–Lake Region Gateway Corridor, the 256-kilometre Great Highlands Connectivity Corridor and the approximately 400-kilometre Lake Victoria Ring Road.
The projects are intended to connect agricultural production areas, fishing communities and trading centres to wider markets while reducing transport costs and travel times.
Sh12.83 billion for Thwake Dam
Cabinet approved an additional KSh12.83 billion to complete the Thwake Multipurpose Dam.
The project is expected to supply 150,000 cubic metres of water daily to about 1.3 million people in Makueni and Kitui counties, including Wote and surrounding areas, as well as Konza Technopolis.
The dam will also support irrigation and future hydropower generation.
Education reforms approved
Cabinet adopted the Sessional Paper on Transforming Education, Training and Research, paving the way for reforms aimed at improving access to quality learning and equipping young Kenyans with skills for employment, entrepreneurship and economic opportunity.
The reforms will strengthen Competency-Based Education, address teacher shortages, expand technical and vocational training and better align education with labour market demands. CABINET NEWS OCTOBER 9, 2026
USD350 million financing for Kenya Airways
Cabinet approved USD350 million in shareholder financing for Kenya Airways to meet urgent financial obligations, including aircraft maintenance and returning grounded aircraft to service.
The funds will be disbursed in tranches under National Treasury oversight, with a repayment period of up to 10 years and the possibility of conversion into equity, subject to the necessary approvals.
Cabinet also endorsed the proposed conversion of Sh122 billion in existing Government loans, plus accrued interest, into an equity-qualifying tradable instrument to strengthen the airline’s balance sheet and support future capital raising.
The measures form part of Kenya Airways’ long-term turnaround plan.
Climate action and insurance reforms
Cabinet reviewed preparations for Mazingira Day on October 10 and reaffirmed its focus on tree growing, ecosystem restoration and climate action.
The Green Challenge aims to mobilise 200,000 Kenyans to plant six million trees within one hour, contributing to the national target of growing 15 billion trees by 2032.
Cabinet also considered plans to restore 462,299 hectares of degraded landscapes and approved additional financing for community-led climate action across all 47 counties.
Cabinet further adopted the National Insurance Policy 2026, which seeks to make insurance more affordable and accessible, particularly for farmers, informal sector workers and small businesses.
The policy proposes reforms to strengthen consumer protection, tighten oversight of insurers, combat insurance fraud and expand digital insurance services.
New laws on construction, farming and corrections
Cabinet cleared the Architectural and Quantity Surveying Practitioners Bill, 2026, which proposes tougher action against unqualified practitioners and penalties of up to Sh2 million or two years in prison for false registration or licensing.
The Geographical Indications Bill, 2026, and Warehouse Receipt System (Amendment) Bill, 2025, were also approved.
The Geographical Indications Bill seeks to protect distinctive Kenyan products against imitation, while the warehouse receipt reforms are intended to reduce post-harvest losses and enable farmers to use stored produce as collateral for credit.
Cabinet also endorsed the Prisons Bill, 2026, and Probation of Offenders Bill, 2026, to support reforms in the correctional system.
Government moves to attract investment
Cabinet endorsed measures to simplify business licensing, reduce regulatory barriers and attract investment.
It also supported the establishment of a European Bank for Reconstruction and Development office in Nairobi to expand access to investment financing.
Other decisions included double taxation agreements with Belgium and the Czech Republic, as well as space cooperation with South Africa and Kazakhstan.
Government reviews Ebola preparedness
Cabinet also reviewed Kenya’s preparedness following a single imported Ebola case involving a patient who has since died.
The Government says enhanced surveillance, screening, contact tracing and health facility readiness measures are in place.
It has urged the public to remain calm, stay vigilant and follow official health advisories.
