Kafando is faced with the task of leading the West African country to elections in a year following a brief military takeover.
The former foreign minister, who will be barred from standing at the elections, is set to name a prime minister on Wednesday and together they will appoint a 25-member government, according a transition timetable.
(READ MORE: Burkina Faso to hand power to transitional body)
"Our country will never be a 'banana republic'. Our eyes are open and things will never be the same again. We will scrupulously respect the political order in this country," Kafando told around 400 people at a hall in the capital.
Kafando was chosen by a committee on Monday set up after President Blaise Compaore resigned and fled on 31 October in the face of mass protests against his attempt to change the constitution and extend his 27-year rule.
(READ MORE: Army officer takes charge in Burkina Faso, ousting general)
Lieutenant Colonel Isaac Zida stepped in the following day and declared himself head of state. He restored the constitution on Saturday in the face of domestic and international pressure.