"The former KCA council has approved, Cricket Kenya, as the sole body to manage, run and administer the game of cricket in Kenya," said its chairman Samir Inamdar after the meeting held in Mombasa.
"It was a unanimous decision taken by all the four provinces."
The decision comes three days before former KCA chairman Sharad Ghai goes on trial on charges of stealing 240 million shillings (3.3 million dollars) from the KCA. The case will start on Wednesday.
Inamdar, who succeeded Ghai in May 2005, said his new administration had inherited huge debts and had found it difficult to get new sponsors to the game.
He said the government had given its approval for the formation Cricket Kenya and had consulted with the International Cricket Council on the matter.
Meanwhile Kenya's new coach Roger Harper arrived in Nairobi late Saturday to take immediate charge and prepare the team for an upcoming tour of Bangladesh.
The former West Indies tactician was appointed to the job two weeks ago on a contract that ends in June 2007.
The 42-year-old Harper met with the officials of the newly-formed Cricket Kenya (CK) on Sunday but is scheduled for another meeting on Monday to lay out his plans for the national team which has gone without any meaningful international exposure since reaching the semi-finals of the World Cup in 2003.
Cricket Kenya officials said Harper's first major assignment is to lead Kenya on a proposed tour of Bangladesh in March.
The tour, which may also involve Zimbabwe has been arranged through the initiative of the International Cricket Council (ICC).
Kenya will play three One-day matches with the Bangladeshis between March 10-21.