NAIROBI, Kenya — Thousands of settlers across the country are set to benefit from a Cabinet decision that waives accrued interest and penalties on land settlement loans amounting to Sh12.3 billion, a move aimed at easing their financial burden and promoting rural development.
The directive, announced on Tuesday, follows recommendations by the Land Settlement Fund Board of Trustees and will apply to more than 520 settlement schemes spread across 26 counties.
The decision forms part of the government’s ongoing efforts to unlock economic potential in rural areas under the Bottom-Up Economic Transformation Agenda (BETA).
According to the Cabinet, the waiver targets low-income settlers who have struggled to clear their land debts, some of which date back several decades. Beneficiaries will now enjoy a 12-month moratorium to clear outstanding principal amounts and obtain title deeds, which can be used as collateral for agricultural or business investments.
“This decision marks a historic step toward resolving long-standing land injustices and empowering smallholder farmers to fully own and develop their land,” the Cabinet noted in its communiqué.
The move is expected to stimulate agricultural productivity by enabling title deed holders to access credit facilities, invest in irrigation, and enhance food security.
The Ministry of Lands and Physical Planning has been directed to oversee the implementation of the waiver and ensure the transparent processing of title deeds for qualifying settlers.
The Cabinet described the decision as a “social justice intervention” aligned with the government’s goal of inclusive growth, especially among communities that settled under post-independence resettlement programmes.
The government plans to roll out public awareness campaigns across the 26 affected counties to educate settlers on how to regularize their land accounts and obtain legal documentation within the 12-month window.
The waiver is part of a broader strategy by the Ruto administration to reform land management, enhance productivity, and address historical grievances linked to land ownership — a critical factor in Kenya’s economic and social stability.
