The move is part of “open skies policies and efforts to support tourism growth” and “promote regional integration and facilitate cross-continental travel”.
Despite introducing the ETA, Kenya fared poorly in the latest rankings for visitor tolerance, dropping 17 places to 46th out of 54 countries on the 2024 Africa Visa Openness Index.
Under the updated system, nationals of most African countries will be allowed to enter and remain without an ETA for up to two months.
However, members of the East African Community, which includes Uganda, Tanzania, Rwanda and Burundi, can stay for up to six months under the bloc's policy.
Kenya also said it would introduce enhanced processes and processing times of up to 72 hours that would “enable travelers to receive instant approval.”
It is not clear when this will come into effect. A Cabinet statement said ministries were tasked with proposing guidelines within a week to improve “the traveler experience at all Kenyan airports.”
Before the introduction of ETA, visitors from more than 40 countries, including several from Africa, could arrive in Kenya, have their passports stamped and enter the country without paying anything.
Unless you are a national of an exempt country, all travelers must apply for and pay their ETA at least three days before traveling to Kenya.
The ETA fee is $30 (£24) and is valid for 90 days.
The policy has come under criticism, with some saying it could make it more difficult for potential visitors to enter the country.
Kenya has suggested there was a safety element to introducing the new system, with a government spokesperson telling the BBC last year that it was necessary to vet travelers.
The country has been targeted by al-Shabab jihadist militants from neighboring Somalia in several notorious attacks.
The government announced on Tuesday that it would also introduce a system to enhance “pre-screening, enhanced security and streamlined passenger processing at points of entry.”