Government moves to ease burden on low-income land settlers with penalty waivers

The government has taken a significant step to ease the financial burden on thousands of low-income land settlers by waiving interest and penalties on outstanding land settlement loans. The Cabinet endorsed the move to support families who have struggled for decades to clear accumulated balances.

According to a Cabinet dispatch released on Tuesday, the measure will benefit settlers in 520 schemes across 26 counties, covering a total portfolio of Sh12.3 billion. The decision follows recommendations from the Land Settlement Fund Board of Trustees, which cited economic hardships and challenges in agricultural productivity as key reasons many settlers have been unable to repay their debts.

The waiver will enable beneficiaries to obtain title deeds, use them as collateral for investment, and regularise land accounts that have been in arrears for years. It is part of the government’s broader Bottom-Up Economic Transformation Agenda, aimed at improving livelihoods, enhancing inclusion in economic systems, and unlocking land-based productivity.

Low-income settlers

"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 decision follows recommendations by the Land Settlement Fund Board of Trustees, which noted that many settlers have been unable to repay accrued interest due to economic hardship and challenges affecting agricultural productivity," reads the dispatch.

Implementation will follow the Public Finance Management Act, with settlers granted a 12-month moratorium to settle their principal balances. The Cabinet noted that the move aligns with ongoing efforts to address historical land injustices, boost agricultural productivity, and unlock economic value from land.

Earlier, the Ministry of Lands had announced plans to waive over Sh6 billion in interest on unpaid settlement fees to help settlers collect unclaimed title deeds nationwide.

Submitted Cabinet memo

Lands Cabinet Secretary Alice Wahome said she had submitted a Cabinet memo on the matter to the Attorney General and the Treasury Cabinet Secretary for approval, following discussions with the President.

“I have sent a request to the Treasury CS. We have also discussed with the President, so that if it is agreeable, we will waive the interest on the fees. I have a pending Cabinet memo, which I have sent to the AG and the CS Treasury,” Wahome said.

The CS also revealed that thousands of title deeds remain uncollected in various land registries, including 33,000 documents at the new Malindi Lands Registry. She urged settlers to pay the small fees and collect their ownership documents promptly, emphasising that title deeds should be kept safely to secure their land.

The Cabinet’s decision is expected to give low-income settlers a renewed opportunity to formalise land ownership, invest in agriculture, and improve livelihoods while addressing long-standing challenges in land settlement.

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• Bottom-Up Economic Transformation
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