The government has renewed its commitment to comprehensive land reforms aimed at redressing historical injustices, expanding access, and modernising land management systems.

While delivering the 2025/26 Budget statement in the National Assembly on Thursday, Treasury Cabinet Secretary John Mbadi proposed a Sh3.8 billion allocations for the settlement of landless Kenyans, terming it a critical step in addressing long-standing inequalities in land ownership.

“We remain committed to  resolving historical land injustices and enhancing equity in land ownership. I have proposed Sh3.8 billion to facilitate settlement of the landless,” said Mbadi.

To support land tenure security and sustainable administration, Mbadi also announced an additional Sh1.1 billion for processing and registration of title deeds.

Another Sh712 million will go toward the digitisation of land registries.

“This will ensure Kenyans have secure access to land through fast, transparent, and credible land administration processes,” he added.

Other proposed allocations in the land sector include Sh200 million for geo-referencing of land parcels, Sh220 million for construction of land registries to safeguard records and legitimacy and an additional Sh900 million for the digitisation and upgrading of land registries across the country.

Mbadi also reported that Kenya’s inflation rate had fallen to 3.8 per cent in May 2025, the lowest in two years, down from a peak of 9.6 per cent in October 2022.

“This decline is the result of targeted government interventions and prudent macroeconomic management,” Mbadi told MPs.

He credited the Central Bank of Kenya’s response, which included gradual monetary policy easing, helping bring down the bank rate from 13 per cent in August 2024 to 9.75 per cent in June 2025.

The ripple effect of this policy shift has led to a sharp drop in borrowing costs, with the 91-day Treasury bill rate falling from 15.9 per cent in 2024 to 8.3 per cent in May 2025.

“Lower inflation and falling interest rates are improving access to credit and supporting economic recovery,” Mbadi said.

The 2025/26 Budget, which is Mbadi’s first as Treasury CS after taking over from Njuguna Ndung’u earlier this year, aims to strike a delicate balance between economic recovery, development spending, and fiscal consolidation in line with President William Ruto’s economic transformation agenda.

“This budget aligns with our promise to deliver a fairer, greener, and more prosperous Kenya for all,” Mbadi concluded.