The settlement, reached in an out-of-court agreement with District of Columbia Attorney-General Brian Schwalb, marks one of the largest ever against a restaurant in the capital.
President William Ruto had pledged to compensate all residents affected by floods with a three-month rent plus a Sh10,000 package.
Following a six-year delay, the fishermen will now begin receiving their compensation, but the governor noted that more than 200 of them had yet to sign the agreement.
4,102 fishermen who lost their fishing areas due to the construction of the Lamu Port will receive the payout.
Matters that arose included her lack of diplomatic experience and the murder of 21-year-old Agnes Wanjiru at the hands of British soldiers.
Due to the nature of the law and its wording, victims of terror attacks who are Kenyan nationals have not been eligible for compensation.