The Cabinet Tuesday endorsed the waiver of interest and penalties on outstanding land settlement loans to ease the financial burden on low-income settlers and advance the economic agenda.
The decision follows recommendations by the Land Settlement Fund Board of Trustees, which noted that many settlers have been unable to repay accrued interest due to economic hardship and challenges affecting agricultural productivity.
A statement from State House said the waiver will benefit thousands of settlers in 520 settlement schemes in 26 counties, covering an accumulated portfolio of Sh12.3 billion.
Beneficiaries will now be able to obtain title deeds, use them as collateral for investment, and regularise land accounts that have been in arrears for decades.
The measure aligns with the government’s ongoing efforts to resolve historical land injustices, enhance agricultural productivity, and unlock land-based economic value.
Implementation will follow the Public Finance Management Act, with a 12-month moratorium provided to enable beneficiaries to clear their principal balances.
Meanwhile, Cabinet endorsed the establishment of an Embassy of the
Republic of Kenya to the Vatican City to strengthen diplomatic engagement with the Holy See and advance Kenya’s global, moral, and development diplomacy.
The Vatican City, home to the Holy See and the seat of the Roman Catholic Church, holds significant influence in global peace, dialogue, and humanitarian affairs.
A resident embassy will deepen bilateral relations, enhance collaboration in peace-building, climate action, humanitarian initiatives, and strengthen engagement with the Vatican’s global network of faith-based institutions.
The move will also boost cooperation with Catholic development agencies that run more than 7,700 schools and 500 health facilities in Kenya, supporting the economic agenda through expanded partnerships in education, healthcare, and social welfare.
The Cabinet further approved the establishment of new embassies in Copenhagen (Denmark) and Hanoi (Vietnam) to expand Kenya’s diplomatic footprint, strengthen bilateral and trade relations and advance the country’s strategic interests globally.
President William Ruto chaired the meeting.
READ ALSO;
Cabinet Approves The Dualling Of The 23.5km Muthaiga-Kiambu-Ndumberi Road
