Government announces waiver on Land Settlement Fund loans for 12 Months
The Ministry of Lands has announced a nationwide waiver of interest and penalties on all outstanding loans issued under Kenya’s Land Settlement Fund.
The Ministry of Lands has announced a nationwide waiver of interest and penalties on all outstanding loans issued under Kenya’s Land Settlement Fund.
In a gazette notice dated 27 March, Lands Cabinet Secretary Alice Wahome said that the waiver was in place to enable beneficiaries of the loans to clear only the principal loan amounts within a 12-month moratorium period starting February 13, 2026, and ending February 14, 2027.
Under the directive, Wahome said that all accrued interest and penalties on loans issued through the Land Settlement Fund have been scrapped, which will give settlers and individual plot owners a one-year window to settle their outstanding principal balances without extra charges.
“Settlement schemes are implemented by the National Government in consultation with the National Land Commission and the respective county governments,” Wahome said.
“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,” she added.
Settling and plot owners have been encouraged to obtain their individual principal loan balances through the Ministry of Lands website.
Wahome has, however, cautioned that any unpaid principal amount after the expiry of the grace period will begin attracting interest in line with existing loan terms.
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The Kenyan Land Settlement Fund (LSF), administered by the Settlement Fund Trustee (SFT), acquires, plans, and subdivides land to settle landless poor citizens and squatter communities.
The SFT provides loans to beneficiaries to purchase these land parcels, with repayment scheduled over a period, and once the loans are fully repaid, the beneficiaries are issued with formal land ownership.
“It is notified for the general information of the public that the Land Settlement Fund Board of Trustees, established under sections 134 and 135 of the Land Act, 2012, administers the Land Settlement Fund for purposes of implementing settlement schemes in the Republic of Kenya,” the notice read.
The announcement comes days after Nairobi County Governor Johnson Sakaja urged Nairobi property owners to clear their outstanding land rates befor April 1, which is teh due date.
Sakaja confirmed that the county is offering a 3 per cent discount on all land rate payments made before March 31 to boost compliance ahead of enforcement.
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