NAIROBI, Kenya — The government has announced a nationwide waiver of interest and penalties on all outstanding loans issued under the Land Settlement Fund, offering thousands of beneficiaries a one-year window to clear their principal balances without extra charges.
In a gazette notice dated March 27, Lands Cabinet Secretary Alice Wahome said the waiver will run for 12 months, from February 13, 2026, to February 14, 2027. During this period, borrowers will only be required to repay the principal loan amounts.
“All accrued interest and penalties on loans issued through the Land Settlement Fund have been waived,” Wahome said, noting the move is intended to ease the financial burden on settlers and encourage compliance.
The directive targets beneficiaries of settlement schemes across the country, where individuals were allocated land through government programmes and financed via loans under the fund.
According to the Ministry of Lands, settlement schemes remain central to Kenya’s land reform agenda, supporting land access, agricultural productivity, and rural development.
The country currently has 520 settlement schemes spread across 26 counties, with 484 already registered and 36 at various stages of registration.
The Land Settlement Fund is administered by the Settlement Fund Trustee (SFT), a body established under Sections 134 and 135 of the Land Act 2012.
The fund acquires, plans, and subdivides land for allocation to landless citizens and squatter communities, who then repay the cost through structured loans before receiving formal ownership documents.
Beneficiaries have been advised to check their outstanding principal balances through the Ministry of Lands’ official platforms and take advantage of the waiver within the stipulated period.
However, Wahome cautioned that any unpaid principal after the February 2027 deadline will begin attracting interest again in line with existing loan terms, underscoring the limited nature of the relief.
The policy intervention comes amid broader efforts by government agencies to improve revenue collection and compliance in the land sector. In Nairobi, Governor Johnson Sakaja recently urged property owners to clear outstanding land rates, offering a 3pc discount for payments made before March 31 ahead of enforcement measures.
