Thousands of landowners across Kenya can finally breathe easier after the Cabinet approved a plan to waive interest and penalties on long-standing land settlement loans.
The decision, made during a Cabinet meeting chaired by President William Ruto at State House, targets borrowers under the Land Settlement Fund Board of Trustees who have struggled for years to clear their debts.
According to the government, the waiver covers 520 settlement schemes across 26 counties, involving about KSh12.3 billion in accumulated charges. Many farmers have faced difficulties repaying their loans due to low farm productivity and rising living costs.
Under the new directive, beneficiaries will only need to pay the principal loan amount within a 12-month period as guided by the Public Finance Management Act. Once they clear their balances, they will qualify for title deeds and can use their land as collateral for credit or investment
