The MV Harambee ferry returned to the Likoni crossing channel in Mombasa this week, following extensive refurbishment after a break down last December.
The ferry underwent repairs and enhancements worth Sh140 million at the Africa Marine yard.
Transport PS Irungu Nyakera, Kenya Ferry Services Board chairman Ramadhan Kajembe and KFS managing director Bakari Gowa witnessed its official resumption of operations.
The PS said plans were underway to reintroduce Mtongwe ferry services, which were brought to a halt in 2012 after the decommissioning of two old vessels.
"We are working round the clock to see to it that the services resume in the next two weeks," he said, noting this will reduce decongestion at the busy channel.
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Nyakera also announced tat two new ferries, being built in Turkey at a cost of Sh1.83 billion, are expected in the country by next June.
The two will supplement the five ferries plying the channel.
The ministry is also working towards the installation of express cable cars across the Likoni channel to improve connectivity between the island and the mainland.
"We are awake to the fact that to address unreliable ferry services, we need to pursue alternative solutions like the sky cab project and construction of a bridge," he said.
More than 300,000 people and 6,000 vehicles cross the Likoni ferry channel every day.