The comments came as a key lawmaker said he wouldn't allow the release of any US aid to Egypt until the government proves it is committed to the rule of law.
Meeting with Egyptian Foreign Minister Nabil Fahmy at the State Department, Kerry said the US wants Egypt to succeed as a democracy and that its new constitution is a positive step.
"Even as these positive steps have been taken, we all know there have been disturbing decisions within the judicial process, the court system that have raised serious challenges for all of us," Kerry said.
"We really are looking for certain things to happen that will give people the sense of confidence about this road ahead," he said. "It's actions, not words, that will make the difference."
Egypt is struggling to restore representative government following last year's military ouster of the country's first-ever democratically elected president, Mohammed Morsi, in the wake of the revolution that toppled long-time autocrat Hosni Mubarak.
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