A fund established to address historical land injustices and resettle landless Kenyans has come under sharp scrutiny after it emerged that Sh1.6 billion has been spent without any beneficiaries being resettled. Auditor General Nancy Gathungu, in her latest report for the financial year ending June 30, 2024, revealed that the Land Settlement Fund has failed to fulfill its core mandate.
The fund, set up in 2012 to resettle Internally Displaced Persons (IDPs), squatters, and landless citizens, acquired four prime parcels of land that remain idle years later. Gathungu flagged Kisima Njoro in Nakuru a 1,112-acre parcel bought for Sh396.9 million in 2012 to resettle victims of the 2007-08 post-election violence. Twelve years on, not a single acre has been allocated.
The same inefficiency is mirrored in other parts of the country. In Kilifi County, Mikanjuni Farm, bought in 2020 for Sh377 million, remains unutilized despite a list of vetted beneficiaries. Nearby, Mazrui Farm purchased for Sh445.4 million in 2022 is only partially distributed. In Mombasa, Kadza Ndani plot, acquired in 2020 for Sh378 million to house informal settlers, remains unused.
Gathungu criticized the fund’s management for a lack of action on previous audit recommendations and for failing to develop formal processes to address operational, financial, and legal risks. “There were no approved guidelines on how to evaluate and mitigate key risks,” she noted.
Compounding the fund’s troubles is Sh6.6 billion in unrecovered loans, some dating back to 1962. With interest, the figure has ballooned to over Sh11.6 billion. The auditor general found no system to track or recover the debts and no provision for bad loans.
The continued mismanagement means thousands of Kenyans remain trapped in poverty, still waiting for land they were promised. The audit report underscores the urgent need for reforms, accountability, and transparent use of public funds meant to deliver justice and dignity through land ownership.
