The Land Development Fund (LDF) is a fund administered by the Ministry of Lands which came into existence through the enactment of the Land Act of 1995 under section 16 (1). The fund is meant to assist City, Municipal and District Councils to open up new areas for development. Thus any council wishing to apply for funds to develop any area in its locality may apply to the Ministry for money to develop that area.

The Land Development Fund is vested in the Minister responsible for Finance and National Planning managed and administered by the Minister responsible for Lands through the Permanent Secretary of Lands.

The Land Development Fund Committee (LDFC) established under Statutory Instrument No. 88 of 1996, scrutinizes the applications, reject a proposed development project or recommend it to the Minister of Lands for his/her final decision.  If the Committee’s recommendation is ratified by the Minister of Lands he/she may request the Ministry of Finance of National Planning to release the money to the Land Development Fund Account at the Ministry of     Lands.  A council that has got an approved project shall open a Land Development Fund Account into which the project money shall be paid.

FUNCTIONS OF THE COMMITTEE
The functions of the Land Development Fund Committee shall be:

• Scrutinize and approve proposals on development projects and disburse the funds to the eligible Councils.
• Prepare an information report for the Minister on all the approved and rejected applications.  The Committee shall also prepare a report on project implementation quarterly.
• Request the Minister of Finance and National Planning to release money to the Land Development Fund Account with the Ministry of Lands.
• Ensure that the eligible Councils that open a separate Land Development Fund Account into which the project money will be paid.
• Monitor the implementation of the approved projects in order to ensure that the programmes are implemented in line with the approved workplans.
• To sensitize and promote awareness on the availability and utilization of the Land Development Fund.
• Ensure Land Development Fund Accounts are audited
• Councils are adhering to the provisions of the Environmental Act