In a major relief for thousands of land settlers, the Kenyan Cabinet has approved the waiver of penalties and interest on land settlement loans worth Ksh12.3 billion. The announcement, made on Tuesday, November 11, targets beneficiaries in 520 settlement schemes across 26 counties.
Land settlement loans are government-issued credits aimed at helping landless and low-income Kenyans acquire and develop agricultural land. Managed by the Land Settlement Fund Board, these loans support farming, livestock rearing, and infrastructure development on settlement plots. Beneficiaries were expected to repay the loans over time using profits from their agricultural activities.
The Cabinet’s decision follows recommendations from the Land Settlement Fund Board of Trustees, which noted that many settlers have struggled to repay loans due to economic challenges and low agricultural productivity.
“At the meeting, the Cabinet endorsed the waiver of interest and penalties on outstanding land settlement loans to ease the financial burden on low-income settlers and advance the Bottom-Up Economic Transformation Agenda,” the statement said.
Under the new measure, beneficiaries will enjoy a 12-month moratorium, allowing them to settle their principal balances without the pressure of accruing interest and penalties. This move also paves the way for settlers to obtain title deeds for their land and regularize accounts that have been in arrears for decades.
The government emphasized that the waiver aligns with efforts to resolve historical land injustices, improve agricultural productivity, and unlock land-based economic value. Implementation will follow the Public Finance Management Act to ensure compliance and accountability.
This decision is expected to provide significant relief to low-income settlers and create opportunities for enhanced agricultural output, contributing to the government’s broader economic transformation goals. By easing financial burdens, the initiative seeks to empower farmers and stimulate growth in rural communities.
