The Cabinet has approved the sale of shares in at least Seven state-owned hotels and lodges.
The move follows Wednesday's Cabinet meeting that was chaired by President William Ruto.
According to a statement from the Executive Office of the President, the move is expected to help with the growth of the hospitality sector in the country.
It said that this will also help in the creation of jobs in the country.
"These divestures are expected to stimulate the expansion of our nation's hospitality industry and grow the individual units through private sector investment.
"This move aligns with the ongoing rebound of the tourism sector that has been buoyed by the Visa-Free entry regime in Kenya, and promises to deliver increased employment and business opportunities in both the divested enterprises as well as across the entire tourism sector," the dispatch reads in part.