Win for land owners as Cabinet endorses waiver of interest, penalties on outstanding land settlement loans

The Cabinet has approved a waiver of interest and penalties on outstanding land settlement loans in a move aimed at easing the financial burden on low-income settlers and advancing the Bottom-Up Economic Transformation Agenda (BETA).

According to a dispatch from State House, the decision follows recommendations by the Land Settlement Fund Board of Trustees, which found that many settlers have struggled to repay accrued interest due to economic hardship and low agricultural productivity.

The waiver is expected to benefit thousands of settlers in 520 settlement schemes across 26 counties, covering an accumulated portfolio of Ksh.12.3 billion.

“Beneficiaries will now be able to obtain title deeds, use them as collateral for investment, and regularise land accounts that have been in arrears for decades,” the statement noted.

The Cabinet said the measure aligns with the government’s efforts to resolve historical land injustices, enhance agricultural productivity, and unlock land-based economic value.

Implementation will follow the Public Finance Management Act, with a 12-month moratorium to enable beneficiaries to clear their principal balances.