The Cabinet has endorsed the waiver of interest and penalties on outstanding land settlement loans following a meeting chaired by President William Ruto.
In a dispatch on November 11, the State House stated that the waiver is intended to alleviate the financial burden on low-income settlers. 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. The waiver will benefit thousands of settlers in 520 settlement schemes across 26 counties, covering an accumulated portfolio of Ksh 12.3 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,” it reads in part.
Implementation will follow the Public Finance Management Act, with a 12-month moratorium provided to enable beneficiaries to clear their principal balances.
Cabinet approves Public Finance Management (Amendment) Bill, 2025
To further strengthen devolution and improve service delivery, the Cabinet approved the Public Finance Management (Amendment) Bill, 2025, which proposes splitting the County Governments Additional Allocations Bill into two separate laws to expedite the disbursement of funds to county governments.
The amendment aims to address delays in enacting the annual Additional Allocations Act, which, in the past, has disrupted service delivery and slowed development at the county level. Under the proposed reform, Parliament will consider two separate Bills, one for allocations from the National Government’s share of revenue, and another for allocations financed through loans and grants from development partners.
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This change is expected to enhance efficiency in public finance management, improve service delivery, and strengthen devolution by ensuring timely transfers to county governments.
Meanwhile, the Cabinet also gave the green light to the dualization of the 23.5km Muthaiga-Kiambu-Ndumberi road to ease congestion and improve mobility between Nairobi and Kiambu counties. The project will expand the existing two-lane highway into a dual carriageway, complete with bypasses, loops, and access roads to increase capacity and reduce travel times. 4 It will also incorporate non-motorised transport lanes and commuter facilities to enhance road safety and accessibility.
“Cabinet noted that the corridor, serving Muthaiga, Runda, Ridgeways, and Kiambu Town, currently experiences chronic traffic congestion, particularly during peak hours. The dualling is part of the government’s broader effort to modernise Nairobi’s metropolitan transport network in line with Kenya Vision 2030 and the UN Sustainable Development Goals on infrastructure and mobility,” the dispatch adds.
Implementation of the Nairobi National Park Athi-Kapiti Wildlife Corridor approved
At the same time, the Cabinet approved the implementation of the Nairobi National Park Athi-Kapiti Wildlife Corridor to secure critical migratory routes and dispersal areas vital for the survival of Kenya’s wildlife.
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The decision follows a presidential directive in July 2023, which called for urgent action to curb habitat fragmentation and escalating human-wildlife conflict around Nairobi National Park. The project will reconnect the park to surrounding conservancies in Machakos and Kajiado counties, thereby restoring vital migratory pathways for species such as zebras, wildebeest, and gazelles.
Implementation will include land acquisition, wildlife-friendly fencing, and the construction of overpasses and underpasses to enable safe animal crossings. Portions of public land, including sections of the Export Processing Zone, will be surrendered to the Kenya Wildlife Service for conservation use.
Beginning in the 2026/2027 financial year, the three-year project will leverage partnerships with conservation agencies and innovative financing such as nature bonds and debt-for-nature swaps.
The Cabinet has also approved a Comprehensive Framework for Infrastructure Projects Pricing to curb inflated project costs, enhance transparency, and improve value for money in public investments.
The framework aims to eliminate the irregular, inconsistent, and costly practices that have characterized the pricing of government infrastructure projects and to establish a data-driven system for determining infrastructure costs, ensuring accountability and the prudent use of public resources.
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