"Lawyers give Lands CS, Attorney General and Settlement Fund Trustees 14 days to suspend debt collection"
Residents of the Borabu Settlement Scheme in Nyamira County have threatened to sue the government over demands for repayment of land settlement loans dating back more than 50 years, accusing officials of relying on inaccurate records and reviving debts that had long been settled.
At least 300 beneficiaries, including some who have since died, had reportedly received demand letters from the Director of Land Adjudication and Settlement requiring them to clear alleged outstanding loans issued in the 1960s and 1970s.
In a 29-page demand letter dated October 30, 2026, Momanyi & Associates Advocates, representing the Borabu Residents Association (BRAM), have given the Lands Cabinet Secretary, Attorney General, Land Settlement Fund Trustees and Director of Land Adjudication and Settlement 14 days to address the complaints or face legal action at the Environment and Land Court.
Dr Kennedy Omanga, a lawyer a sub committee official and a Borabu resident, said many original beneficiaries had already cleared their loans and received title deeds, with some subsequently transferring the properties to their children or selling them to other buyers.
"How can the government demand payment for loans dating back 50 to 60 years without first establishing whether the original beneficiaries actually owe the money? These are matters that should have been settled decades ago," Dr Omanga said.
He questioned the decision to send demand letters to deceased beneficiaries, saying it had caused anxiety among families who believed their land ownership matters had been conclusively settled.
Among those reportedly affected are families of former Cabinet ministers Simeon Nyachae and James Nyamweya, as well as those of Mamboleo Onsando, Andrew Omanga and other former settlers.
The lawyers are challenging Gazette Notice No. 56, published on March 27, 2026, through which the government waived accumulated interest and penalties on loans issued under the Land Settlement Fund.
The notice requires beneficiaries to pay outstanding principal balances by February 14, 2027.
While welcoming the relief programme, the residents argue that its implementation was legally questionable and poorly communicated.
They contend that the Lands Cabinet Secretary Alice Wohome lacked authority to waive public debt, a mandate they argue rests with the National Treasury.
They also claim the notice was not subjected to public participation or tabled in Parliament within the required seven sitting days.
The lawyers further say implementation letters dated March 27 were only delivered through local chiefs on October 7, leaving beneficiaries with significantly reduced time to comply.
They have also questioned the accuracy of the ministry's records, citing demand letters addressed to deceased people, combined debts involving different beneficiaries and parcels, and principal amounts they consider implausibly high.
The residents also argue that some claims are time-barred under the Limitation of Actions Act, while accumulated interest in certain cases allegedly exceeded the original principal, contrary to the in duplum rule.
They are demanding an immediate suspension of debt collection, a forensic audit of the Settlement Fund records, verification of individual loan balances and correction of the disputed database.
They also want detailed statements showing each beneficiary's loan history, removal of unlawfully accumulated interest and discharge of charges where applicable.
relief cannot solve the problem if the principal figures being demanded are themselves disputed," Dr Omanga said, calling for engagement with affected families before further recovery action.
The lawyers warn that failure to comply within 14 days will trigger a constitutional petition seeking judicial review, injunctions and a declaration that the contested notice is invalid.
Kenya had established settlement schemes after independence to address landlessness and expand African land ownership.
The government facilitated the acquisition of former large-scale farms through loans advanced to beneficiaries, including development financing.
Section 35 of the Land Act, 2012, provides for the Land Settlement Fund. According to the Lands Ministry, Kenya has 520 settlement schemes across 26 counties, with 484 registered and 36 undergoing registration.
The national debt relief programme is estimated to involve about Sh12.3 billion in waived interest and penalties. However, the waiver does not cancel outstanding principal balances.
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