Government commits to fund key infrastructure projects in Nyanza

The National Government has pledged to invest in key infrastructure projects aimed at unlocking Nyanza’s full economic potential, marking a significant milestone in the region’s transformation.

The flagship projects include the long-awaited Magwagwa Multi-Purpose Dam, the expansion of a potato processing factory in Migori, and the construction of Lake Victoria Ring Road, all of which have been in the planning stages for years.

The government’s agenda aims to address critical gaps in infrastructure while boosting sectors such as agriculture, transport, and tourism, with expected spillover effects on employment, trade, and regional cooperation.

The planned Magwagwa Multi-Purpose Dam project, situated on the Sondu River in Nyamira county, has been on the drawing board for decades.  Its completion is expected to provide water for irrigation and power generation.

Construction is anticipated to commence in 2029, with the dam becoming operational by 2032.  Beyond power generation, the dam is designed to support a 13,000-hectare irrigation scheme, benefitting the counties of Nyamira, Kisumu, Kericho, Bomet and Homa Bay.

The Lake Basin Development Authority, in collaboration with Xago Africa, is spearheading the development of this project.  The dam’s reservoir is planned to have a capacity of 445 million cubic meters, with an expected annual electricity generation of approximately 570 gigawatt-hours (GWh).

Similarly, the Soin-Koru Multi-Purpose Dam, initially conceived in the 1950s, will bring immense benefits to several counties within the Lake Region Economic Bloc (LREB). The dam aims to control flooding which has been a perennial problem in the Nyando and Ahero plains. By providing a reliable water supply for domestic and livestock use, irrigation and hydropower generation, it will increase food security, improve agricultural productivity, and provide much needed energy for industrialisation.

The Lake Victoria Ring Road will provide vital transport infrastructure to connect counties around the lake, significantly enhancing regional trade, tourism, and economic collaboration. It will serve as a critical economic artery, facilitating faster transportation and opening lacustrine trade across East Africa.

The planned expansion of Getonganya Sweet Potato Processing Factory in Kuria West, Migori county will address the perennial issue of post-harvest wastage while adding value to the region’s agricultural output.  The factory currently operates at a fraction of its 40-ton daily capacity, producing a mere 3-tons daily.

The construction of the Nyamira County Aggregation and Industrial Park in Sironga is taking shape.  On completion, it will foster a diverse range of opportunities, improving the livelihoods of local farmers and entrepreneurs.

During the recent Nyanza International Investment Conference 2025, investors from Turkey, Dubai, China, and the UK joined forces with local government officials to explore business opportunities in the Nyanza region.

Equity Bank signed two key memorandums of understanding (MOUs) with Homa Bay and Siaya counties to finance development projects. These agreements signal confidence in the region’s growth potential and will unlock funding for local initiatives. Additionally, Equity Bank reached an agreement with the Tag & Batch Company to provide financial backing for projects in the Blue Economy, further boosting Nyanza’s maritime and aquatic industries.

The Kenya Investment Authority (KenInvest) unveiled six major projects, one from each county, which are set to attract investments ranging from US$5 million to US$20 million. These projects, including ventures in agriculture, manufacturing, and infrastructure, have been carefully vetted and show strong potential for returns between 15 per cent and 24 per cent. KenInvest will work alongside county governments to finalize the plans and secure further partnerships.

The conference also witnessed groundbreaking discussions in the health and education sectors. Diaspora health consultant Emily Nyindodo engaged with Busia County to scale up the region’s health data analytics capacity, promising significant improvements in service delivery. Similarly, Migori County entered into discussions to enhance its health systems through better data management and remote teaching capabilities, leveraging Tom Mboya University as a hub for specialized education.

The conference, which took place at Kisumu’s Ciala Resort, was attended by governors from the Lake Region Economic Bloc (LREB) counties, Cabinet Secretaries, Principal Secretaries, and members of the diplomatic corps. With the participation of more than 850 delegates and 180 exhibitors from the government, the private sector, academia and civil society, the conference exceeded attendance expectations.