This paper presents an iterative Kalman filter (IT-KF) with a reduced-biased Kalman gain for single channel speech enhancement in Non-stationary Noise Conditions (NNCs). The proposed IT-KF aims to offset the bias in Kalman gain through efficient parameter estimation leading to improve the speech enhancement performance. To do this, we introduce a Decision Directed (DD) and a posteriori SNR based noise variance estimation method controlled through Speech Activity Detector (SAD). The proposed SAD incorporates a majority voting of three distinct SAD fusions. The LPC parameters are computed from the pre-smoothing of noisy speech. With these initial estimated parameters, an IT-KF processes the noisy speech at first iteration. The parameters are re-estimated from the processed speech, re-adjust the Kalman gain, and the process is repeated at second iteration. It is shown that the adjusted Kalman gain enables the IT-KF to minimize the remaining artifacts of the processed speech, yielding the enhanced speech. Extensive simulation results reveal that the proposed method outperforms other benchmark methods in NNCs for a wide range of SNRs.