President William Ruto and the United States Secretary of State, Antony Blinken had a phone conversation on Wednesday.
The two held talks after Ruto bowed to pressure from Kenyans to drop the Finance Bill, 2024.
The department said Blinken lauded Ruto for his measures to ensure peace prevails in the country.
"The Secretary thanked President Ruto for taking steps to reduce tensions and pledged to engage in dialogue with the protestors and civil society," a statement from the Spokesperson said.
Blinken reiterated the importance of security agencies exercising restraint to avoid any form of violence.
He also called for speedy investigations into any human rights abuses.
"The Secretary underscored the importance of security forces demonstrating restraint and refraining from violence and encouraged prompt investigations into allegations of human rights abuses."
Blinken further appreciated Ruto for his commitment to upholding the Constitution and protecting the rights of all citizens.
He reiterated the partnership of the United States with Kenya’s government and people, as they work to address their economic challenges.
"The Secretary welcomed President Ruto’s commitment to Kenyans’ constitutionally-endowed rights, including peaceful assembly and due process for those detained," the statement further reads.
On Wednesday, President Ruto conceded to the demands of the protesters countrywide and dropped the contentious tax proposals.
Ruto announced that he would not sign the highly contentious Finance Bill 2024, which had sparked mass protests across the country resulting in at least 23 reported deaths.
"Having reflected on the continuing conversation regarding the content of the Finance Bill 2024, and listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede, and therefore I will not sign the 2024 finance bill," Ruto said during a televised address.
The President's decision came just a day after the Bill was passed by Parliament, despite nationwide demonstrations against it.
Protesters had even broken into the Parliament Building, vandalising the interior and setting parts of the complex on fire.
The ceremonial mace, symbolising the authority of the legislature, was also stolen during the chaos.
As of Wednesday, at least 12 deaths had been recorded from the protests in Nairobi County alone.