There were 257 people in hospital, 48 of them in intensive care, well down from the 900-plus people in hospital two months ago.
"We are taking a cautious approach, recognizing that active cases and hospitalizations have declined, but the threat of COVID-19 remains real", said Kenney.
A decision on Step Three will be at least another three weeks. Today, Alberta saw another 35 cases of the United Kingdom variant reported for a total of 457 cases of that strain.
Alberta is well into its second round of economic lockdowns tied to the second wave of the novel coronavirus. A field hospital was prepped at the University of Alberta.
Some medical experts, including the Edmonton Zone Medical Staff Association, warned the province last week against further loosening public-health measures.
The province ordered restaurants, bars, gyms and other businesses to close, restricted retailers to 15-per-cent capacity, and banned all social gatherings in December.
As government and health officials hinted Tuesday, Hinshaw announced the province would extend the period between first and second vaccine doses to up to four months "with the goal of providing first doses to all Albertans as soon as possible". Small outdoor gatherings were also permitted. Some restrictions were lifted on youth sports both in and out of school. Approximately 89,000 people have received two doses.
There is also $736 million allocated for home care, $1.6 billion for designated supportive living facilities, $1.2 billion for long-term care and more than $500 million in capital funding over three years for continuing care facilities.
It is booking appointments for seniors older than 75 and for those in First Nations older than 65.
The change is in line with the recommendation issued Wednesday afternoon by the National Advisory Committee on Immunizations (NACI) to extend second doses of COVID-19 vaccines up to 16 weeks after the first. "How that will change the administration of those who are in (the current vaccination phase) is still to be determined", he said.