The government has announced a one-year waiver on interest and penalties for loans issued under the Land Settlement Fund, offering relief to thousands of beneficiaries across the country.

In a gazette notice dated March 27, Lands Cabinet Secretary Alice Wahome said the waiver will allow settlers and individual plot owners to repay only the principal loan amounts within a 12-month moratorium period.

The grace period took effect on February 13, 2026, and will run until February 14, 2027.

According to the CS, the directive removes all accumulated interest and penalties, giving beneficiaries a limited window to clear their outstanding balances without incurring additional costs.

“Settlement schemes are implemented by the National Government in consultation with the National Land Commission and respective county governments,” Wahome said.

She noted that settlement schemes remain a key pillar in promoting land access, boosting agricultural productivity, and supporting rural development. Kenya currently has 520 settlement schemes spread across 26 counties, with 484 already registered and 36 still undergoing the registration process.

Beneficiaries have been encouraged to check their outstanding principal balances through the Ministry of Lands website to take advantage of the waiver period.

However, Wahome cautioned that failure to settle the principal amount within the stipulated timeframe will result in the reintroduction of interest in line with existing loan terms.

The Land Settlement Fund, administered by the Settlement Fund Trustees under the Land Act of 2012, is designed to help landless citizens and squatter communities acquire land.

Through the programme, the government acquires and subdivides land, offering loans to beneficiaries who repay over time before receiving formal ownership documents.