Kenya's Ministry of Lands has announced a nationwide waiver of interest and penalties on all outstanding loans under the Land Settlement Fund. Lands Cabinet Secretary Alice Wahome issued the directive in a gazette notice dated March 27, enabling beneficiaries to clear only principal amounts during a 12-month moratorium from February 13, 2026, to February 14, 2027. The move aims to support plot owners and settlers in settling debts without extra charges.
Lands Cabinet Secretary Alice Wahome stated in the gazette notice that all accrued interest and penalties on the loans have been waived, giving settlers and plot owners a one-year window to settle outstanding principal balances without additional charges.
"Settlement schemes are implemented by the National Government in consultation with the National Land Commission and the respective county governments," Wahome said. She added, "Settlement schemes play an important role in supporting land access, agricultural production, and rural development in Kenya. Currently, there are 520 settlement schemes across 26 counties, of which 484 are registered, and 36 are undergoing registration."
The Kenyan Land Settlement Fund (LSF), administered by the Settlement Fund Trustees (SFT), acquires, plans, and subdivides land to settle landless poor citizens and squatter communities. The SFT provides loans to beneficiaries to purchase these parcels, with formal land titles issued upon full repayment.
Plot owners and settlers are encouraged to obtain their individual principal balances via the Ministry of Lands website. Wahome cautioned, however, that any unpaid principal after the grace period will attract interest per existing loan terms.
The announcement follows days after Nairobi County Governor Johnson Sakaja urged property owners to clear land rates before April 1, offering a 3 percent discount for payments made before March 31.