President William Ruto with Lands Cabinet Secretary Alice Wahome in Thika Town on March 27, 2026.
The Ministry of Lands has announced a nationwide waiver of interest and penalties on all outstanding loans issued under Kenya’s Land Settlement Fund (LSF), a move that will benefit thousands of settlers and boost property investment in Kenya. The waiver allows beneficiaries to pay only the principal amounts of their loans during a 12‑month moratorium running from 13 February 2026 to 14 February 2027.
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Key Details of the Waiver
Under the waiver, all accrued interest and penalties on LSF loans have been scrapped, giving settlers and plot owners a one-year window to settle their outstanding principal balances without extra charges. This move is expected to unlock real estate opportunities in Kenya, particularly for smallholder farmers and landless citizens.
CS Alice Wahome stated:
“Settlement schemes are implemented by the National Government in consultation with the National Land Commission and the respective county governments. They play an important role in supporting land for sale in Kenya, agricultural production, and rural development.”
Currently, there are 520 settlement schemes across 26 counties, with 484 already registered and 36 undergoing registration. These schemes offer settlers access to residential plots in Nairobi and other counties, creating long-term opportunities for property investment Kenya and real estate developers in Kenya.
Billions in Arrears Written Down
Recent reports indicate that the waiver applies to accumulated interest and penalties on loans worth approximately KSh 12.3 billion. Many beneficiaries now have a chance to secure formal land ownership and invest in homes for sale in Nairobi and other urban centres without the burden of extra charges.
This move also aligns with the government’s efforts to improve the Nairobi real estate market and unlock the potential of land investment Kenya, particularly in high-demand areas like Westlands, Kilimani, and Karen, where plots and houses for sale in Nairobi remain highly sought after.
Land Settlement Fund Background
The Kenyan Land Settlement Fund, administered by the Settlement Fund Trustee (SFT), acquires, plans, and subdivides land to settle landless citizens. Beneficiaries receive loans to purchase these parcels, with repayment scheduled over time. Once loans are fully repaid, settlers are issued title deeds, enabling them to invest in property investment opportunities Kenya or develop rental property investment Kenya.
The fund has faced challenges over the years, with many loans tied up in accumulated interest. The waiver is expected to regularize property in Nairobi Kenya and support real estate investment Kenya by giving settlers access to usable collateral.
Future Terms and Compliance
CS Wahome cautioned that any unpaid principal after the grace period will begin accruing interest again. Settlers are encouraged to access their individual balances through the Ministry of Lands website and settle within the moratorium period.
In parallel, Nairobi County Governor Johnson Sakaja urged property owners to clear outstanding land for sale in Nairobi rates before 1 April 2026, offering a 3% discount to boost compliance. This move is expected to improve the Kenya property market and stimulate real estate returns in Kenya.
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Impact on Real Estate and Investment
The waiver is a significant step toward increasing buy property in Kenya from abroad opportunities, enabling Kenya diaspora property investment and safer property for Kenyans in diaspora investments. With thousands of residential plots in Nairobi now more accessible, both local and international investors can explore buy house in Nairobi and land investment Kenya prospects without the burden of past penalties.
