The Indian Ocean has been removed from the list of high-risk areas.
A statement from the ministry said this was due to recent security developments, which showed a decrease in the number of incidents of piracy and armed robbery in the region.
The ministry said that cases had dropped by approximately 22 per cent globally compared to the same period last year.
Ambassador Manoah Esipisu said Kenya is delighted with the decision to remove the Indian Ocean from the high-risk areas.
"This will greatly boost commerce and remove the security cloud that's hung over our region for more than a decade," he said.
Esipisu is the high commissioner for Kenya to the UK and permanent representative to the International Maritime Organisation.
The decision was communicated by the IMO, the UN agency responsible for the safety and security of shipping.
Maritime security issues such as smuggling and illegal fishing that pose threats to regional security led to the sanction.
According to the ministry, Kenya remains at the forefront of ensuring sustainable approaches to address the root causes through regional mechanisms.
"The discontinuation of the Indian Ocean High-Risk Area will save businesses billions of shillings in insurance fees, lowering the prices of goods in Kenya and the wider East Africa," the statement reads.