President William Ruto has unveiled a Sh1.5 billion government plan to construct three additional fish-landing beaches along the shores of Lake Victoria, aiming to accelerate economic transformation in Kenya’s Nyanza region and strengthen food security through sustainable fishing practices (Capital FM).

Unlocking the Blue Economy: A Strategic Imperative

Lake Victoria, the largest freshwater lake in Africa and the world’s second-largest by surface area, spans 68,800 km² and touches Kenya, Uganda, and Tanzania. It supports an estimated 35 million people in surrounding communities through fisheries, agriculture, tourism, and transport (MyGov).

Yet despite its vast potential, Lake Victoria’s shoreline infrastructure remains underdeveloped:

• Overcrowded Landing Sites: Existing beaches like Dunga and Usoma operate beyond capacity, leading to congestion, post-harvest spoilage, and safety risks.
  
• Weak Cold-Chain Facilities: Limited access to ice plants and cold storage results in up to 30 percent of daily catches going to waste.
  
• Environmental Degradation: Overstocking, pollution from agriculture and urban runoff, and invasive species such as the water hyacinth have strained both fish stocks and navigability.
  

By investing in purpose-built landing beaches—with modern jetties, auction halls, cold rooms, and waste-management systems—President Ruto’s initiative seeks to jump-start what economists call the “blue economy”: the sustainable use of aquatic resources for inclusive growth and job creation.

Details of the Sh1.5 Billion Package

Speaking in Kisumu on Thursday—just days before Madaraka Day celebrations in Homa Bay—President Ruto outlined key components of the plan:

1. Three New Landing Beaches: Sites to be selected in consultation with county governments and fishing communities, featuring concrete jetties, fish auction platforms, and hygienic handling areas.
   
2. Cold-Chain and Post-Harvest Facilities: Installation of ice plants and refrigerated transport hubs to reduce spoilage and improve fish quality.
   
3. Rescue Boats and Safety Equipment: Contracts awarded to Kenya Shipyards Limited to build search-and-rescue vessels, buoyed by CBM-approved life jackets and first-aid kits.
   
4. Training and Co-Management Units: Establishment of “Beach Management Units” to train fishers in resource stewardship, gear maintenance, and basic bookkeeping.
   

From Conference Halls to Shorelines: The Blue Economy Summit

The announcement coincided with the closing day of the Blue Economy and Maritime Affairs Summit at Tom Mboya University in Homa Bay—a three-day gathering bringing together policymakers, researchers, investors, and community leaders to chart pathways for sustainable lake-based development (allAfrica.com).

Highlights of the summit included:

• Keynote by Cabinet Secretary Ali Hassan Joho on the Blue Economy’s promise for job creation and climate resilience.
  
• Workshops on Smart Fisheries: Showcasing IoT-enabled fish tracking and mobile platforms for real-time pricing.
  
• Panel on Gender and Equity: Advocating for women’s leadership in fish-processing cooperatives, given that women handle 70 percent of shore-based value-addition activities.
  
• Site Visits: Delegates toured the Dunga Beach Management Unit, observing a pilot cold-storage facility funded by the Netherlands Development Organisation (SNV).
  

Cabinet Secretary Joho’s Commitment: Beyond Beacons and Boats

A day before the President’s Kisumu address, CS Ali Hassan Joho—who heads the Ministry of Mining, Blue Economy, and Maritime Affairs—launched the Achich Beach Management Unit in Homa Bay. Joho emphasized that the new landing sites would:

• Reduce Post-Harvest Losses by up to 25 percent through improved handling and storage.
  
• Improve Livelihoods by enabling fishers to secure higher auction prices via digital price boards and transparent grading systems.
  
• Enhance Safety through government-built rescue boats and regular vessel inspections.
  

Nyanza’s Economy: Fishing and Beyond

The Nyanza region—comprising Kisumu, Homa Bay, Siaya, and Migori counties—depends heavily on Lake Victoria for both subsistence and commercial fisheries. Key economic indicators:

• Fisheries Contribution: Approx. 40 percent of national fish catch, valued at KSh 28 billion in 2024.
  
• Employment: Over 200 000 direct jobs in fishing, fish-processing, boat-building, and transport.
  
• Household Incomes: Average monthly earnings for lakeside families range between KSh 10 000–15 000, with spikes during the Nile perch season.
  

Beyond fisheries, the blue economy model encompasses:

• Aquaculture: Pond and cage culture of tilapia, projected to grow at 8 percent annually.
  
• Tourism: Water-based recreation, beach lodges, and cultural experiences, with tourism receipts in Kisumu County reaching KSh 4 billion in 2024.
  
• Renewable Energy: Pilot projects on floating solar panels in Migori and Siaya.
  

By linking landing-beach infrastructure to value-added chains—smoking, filleting, packaging—government planners hope to capture up to 70 percent more value locally, instead of exporting raw catch for processing abroad.

Complementary Investments: Affordable Housing in Kisumu

On the same day in Kisumu, President Ruto, joined by former Prime Minister Raila Odinga, commissioned the construction of 750 affordable housing units worth Sh3.5 billion under the LAPFUND Makasembo Affordable Housing Project (The Star). Key details:

• Phase One: 110 completed units (30 studios, 40 one-bedroom, 38 two-bedroom, 2 studio-cum-shops) ready for handover at the Homa Bay site.
  
• Broader Project: Located on an 11.6-acre plot near Kisumu International Airport, Makasembo ultimately targets over 2 300 units, with proximity to Moi Stadium, shopping centers, and Kisumu Polytechnic (Kenya News Agency).
  
• Land Donation: ODM leader Raila Odinga contributed an extra 5 acres along the Kisumu–Busia highway to expand affordable housing stock (Jabali Digital Media).
  

Community Voices and Local Leadership

• Anyang’ Nyong’o, Kisumu Governor: “These landing beaches will create an estimated 5 000 direct jobs in construction and fish-handling, while reducing youth unemployment along the shore.”
  
• Gladys Wanga, Homa Bay Governor: “Modern infrastructure will empower women-led cooperatives in fish processing, driving rural – urban value-chain linkages.”
  
• Local Fisherfolk: “We spend hours unloading fish on muddy banks. With jetties and ice plants, we can fetch better prices and feed our families more reliably,” said John Otieno, chair of the Dunga Beach Management Unit.
  

Environmental Safeguards and Sustainability

To ensure ecological balance, the government has mandated:

1. EIA Compliance: All new landing-site constructions must undergo rigorous Environmental Impact Assessments managed by the National Environment Management Authority (NEMA).
   
2. Hyacinth Control: Collaboration with KMFRI to deploy mechanical harvesters and pilot bio-control agents against invasive water hyacinth.
   
3. Catch Monitoring: Introduction of digital logbooks on GPS-equipped vessels to curb illegal, unreported, and unregulated (IUU) fishing.
   

These measures dovetail with the Kenya Blue Economy Strategy (2018–2022), which calls for balancing economic growth with protection of aquatic ecosystems.

Financing Structure and Public-Private Partnerships

The Sh1.5 billion allocation is budgeted under the Ministry of National Treasury and Economic Planning, with co-funding from:

• African Development Bank (AfDB): Potential concessional loan of US $50 million for cold-chain upgrades.
  
• World Bank: Technical assistance through the Kenya Marine Fisheries & Blue Economy Programme.
  
• Private Sector: Local banks and impact investors exploring blended-finance models for value-addition facilities.
  

By leveraging DFI instruments and public-private partnerships (PPPs), the government aims to de-risk capital expenditure and attract follow-on funding for complementary ventures such as fish-meal plants and marine tourism lodges.

Risks, Challenges, and Mitigation

While the plan is ambitious, Nairobi must navigate several hurdles:

• Currency Volatility: The Kenyan shilling’s fluctuation against the dollar could inflate infrastructure costs.
  
• Maintenance Funding: Past beach projects suffered from neglect due to absent maintenance budgets. Proposed solution: Beach Management Units to levy minimal fees for upkeep.
  
• Regulatory Overlap: Coordination needed across national agencies—Kenya Fisheries Service, Kenya Ports Authority, Maritime Authority—to streamline approvals.
  

The government has pledged to address these through periodic audits, stakeholder forums, and a Blue Economy Oversight Committee reporting to the President’s office.

Projected Impacts and Timeline

Short-Term (6–12 months)

• Completion of feasibility studies and site selection.
  
• Launch of construction for the first landing beach, targeting Q4 2025.
  
• Delivery of initial rescue boats by Kenya Shipyards.
  

Medium-Term (1–2 years)

• Commissioning of all three beaches by mid-2027.
  
• Operational cold-chain networks reducing fish losses by 20 percent.
  
• Training of 3 000 fishers in sustainable practices.
  

Long-Term (3–5 years)

• Annual fish exports rising by 15 percent due to quality improvements.
  
• Growth of ancillary industries (boat-building, packaging) generating 10 000 new jobs.
  
• Establishment of Lake Victoria as a regional blue-economy hub, attracting foreign direct investment.
  

Conclusion: Anchoring Growth on the Shores of Victoria

President Ruto’s Sh1.5 billion investment marks a watershed moment for Nyanza’s blue economy. By upgrading landing infrastructure, expanding cold-chain capacity, and empowering coastal communities, the initiative aims to transform Lake Victoria from an under-utilized asset into a driver of shared prosperity.

Coupled with complementary affordable housing projects in Kisumu, the government’s multi-sectoral approach underscores a broader development vision: one where sustainable natural-resource management, inclusive urbanization, and private-sector partnerships converge to uplift livelihoods and fortify Kenya’s economic resilience.

As work commences on the new landing beaches, all eyes will be on how effectively local management structures, environmental safeguards, and financing mechanisms come together—turning political promises into tangible progress for the millions who call Lake Victoria home.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

30th May, 2025