The privatisation, the Cabinet explained in its Tuesday session at State House, will also tame demand for government resources and generate more funds to drive development.
At the same time, the Cabinet has allocated Sh23.96 billion for the April to October 2023 period to counter drought effects.
The government noted that counties affected will slide into more severe situation due to the January-March dry season.
The Cabinet noted that the situation has been complicated by the rising insecurity in Turkana, Samburu, Baringo, West Pokot, Laikipia, Marsabit, Isiolo and Garissa counties.
It further allowed the National Treasury to engage the Director of Public Prosecutions and provide the relevant information on the public interest implications arising from the huge financial exposure of Government arising from its unmet obligations in respect of the Commercial and Financing Agreements for the three dam projects to facilitate a stay of the ongoing international arbitration proceedings and a negotiated commercial settlement.
The Cabinet also approved the restructuring of the Government's outstanding debt service obligations under the Financing Agreements for the Arror, Kimwarer and Itare dams.
The top decision-making body reinstated the mandate, functions and operations of the Technical and Vocational Education & Training-Curriculum Development Assessment and Certification Council (TVET-CDACC).
This means TVET-CDACC will now be tasked with the designing and development of learner-centred, demand-driven curricula for the training institutions, examination, assessment and competence certification.
The Cabinet also approved the establishment of the National Alternative Dispute Resolution Policy to decongest the courts.