He spoke on Saturday during the Labour Day celebrations at State House.
The directive takes effect from midnight. It implies Kenyans are now free to visit any part of the country.
The Head of State further revised the curfew hours in the zoned area to 10.00 pm and end at 4.00 am.
Residents in the disease-infested areas had been restricted from moving after 8am even though the directive was consistently flouted.
President Kenyatta stressed that the decision to ease these measures was arrived at because the Covid-19 cases had significantly reduced.
After one month of lockdown, COVID caseload within the zoned area has come down by 72%,” he explained.
But he warned he will not hesitate to bring back the measures especially if the number of positive Covid-19 cases increase.
President Kenyatta has also allowed the resumption of in-person and congregational worship but in strict fidelity to the guidelines issued by the Inter-Faith Council and Ministry of Health, Uhuru said.
He stressed that attending congregation be capped at one-third of the capacity of the place of worship.
He further lifted the ban on restaurants and eateries in the zoned area.
He urged them to utilize outdoor spaces to maximize physical and social distancing.
In the directive, the President further mentioned that all education institutions in all levels of learning will re-open in accordance with the calendar issued by the Ministry of Education.
All bars in the country will operate until 7.00 pm until otherwise directed.
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