NAIROBI, Kenya, Nov 12 — Cabinet has approved the waiver of interest and penalties on outstanding land settlement loans amounting to Sh12.3 billion, a move aimed at easing financial pressure on low-income settlers and unlocking land-based economic potential.According to a Cabinet dispatch released on Tuesday, the decision follows recommendations from the Land Settlement Fund Board of Trustees, which noted that many settlers have struggled to repay accrued interest due to economic hardship and low agricultural productivity.“The waiver will benefit thousands of settlers in 520 settlement schemes across 26 counties,” the statement said.“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 waiver forms part of the government’s broader efforts to address historical land injustices and boost agricultural productivity.Implementation will follow the Public Finance Management Act, with a 12-month moratorium granted to enable beneficiaries to clear their principal loan balances.The move builds on earlier land reform measures, including the October 2025 waiver of interest on land allocation charges for settlement schemes in Laikipia County, underscoring a consistent policy of financial relief for low-income settlers.The government established land settlement schemes to provide land ownership and farming opportunities for low-income citizens, but many participants have faced challenges in servicing loans due to low yields, inadequate infrastructure, and limited access to financing.