Lake Victoria Highway: Nyanza Counties Set for Major Economic Transformation

Kenya’s 612-kilometre Lake Victoria Ring Road is expected to deliver a major economic boost to five counties by improving transport links, opening up markets and supporting trade around the lake region.

The ambitious highway will connect Busia, Siaya, Kisumu, Homa Bay and Migori, creating a major transport corridor linking communities and economic centres across the Lake Victoria Basin.

The project has been in the pipeline for more than a decade, with the government now preparing to move ahead with construction.

President William Ruto announced in September that the first phase would begin in November 2026, with Ksh60 billion set aside for the initial works. Treasury Cabinet Secretary John Mbadi has also indicated that funding support from the World Bank has been secured.

The road is expected to significantly improve the movement of agricultural produce, fish and other goods from rural areas to major markets. Farmers and traders in the five counties could benefit from reduced transportation costs and shorter travel times, while fishing communities along Lake Victoria would gain better access to landing sites and commercial centres.

The highway is also expected to support tourism by improving access to destinations and attractions around the lake. Better roads could encourage investment in hotels, restaurants, transport services and other businesses serving visitors.

Beyond local trade, the project is expected to strengthen regional commerce by improving connections between western Kenya and neighbouring countries, particularly Uganda and Tanzania. The Kisumu-Busia section will also strengthen an important route towards the Northern Corridor and regional markets.

The road’s wider economic impact could extend to agriculture, fishing, logistics and manufacturing. Improved infrastructure is expected to make it easier for businesses to move raw materials and finished products, potentially encouraging investors to establish processing facilities closer to production areas.

The project will also incorporate modern infrastructure, including fibre-optic connectivity along the corridor. This could improve internet access and create opportunities for digital businesses and services in communities currently facing connectivity challenges.

The government has said the road is part of broader efforts to reduce transport costs, connect rural communities to markets and unlock economic opportunities through infrastructure development.

For residents of Busia, Siaya, Kisumu, Homa Bay and Migori, the successful implementation of the project could therefore mark a major change in how goods, people and services move across the Lake Victoria region.

With construction preparations advancing, attention is now shifting to the implementation of the project and whether the government will maintain the promised timelines for one of Kenya’s largest planned road investments.

Link; https://peopledaily.digital/news/kenyas-612km-lake-victoria-highway-5-counties-in-line-for-massive-economic-boost

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