By Dr.Edris N.Omondi (Advocate)
Kisumu County, located on the shores of Lake Victoria, holds immense potential as an investment hub, particularly in sectors like tourism, manufacturing, and the emerging blue economy.
The recently concluded Nyanza International Investment Conference (2025) was a stamp in the right direction on already ongoing County Government of Kisumu Investment initiatives over the years under Governor Anyang Nyong’o.
Despite many opportunities, the region has faced several challenges that hinder investment, particularly in infrastructure, high costs of doing business, and insecurity.
For Kisumu to competently chart its way forwards and soar with the eagles, addressing these barriers is crucial to unlocking the county’s true economic potential.
Governor Nyong’o Lays the Foundation for Growth
With Kisumu County being a credit rated County, Governor Anyang’ Nyong’o has been a driving force behind Kisumu’s effort in improving its economic landscape from the inception of the County Governments, coordinating relentless efforts year-round amidst limited resources.
His leadership skills birthed the Kisumu International Investment Summit & Expo of 2021,with impeccable strides like, the ‘Marwa Health’ indigent health insurance scheme, that effectively brought on board 45,000 impecunious residence of Kisumu County, access health care without paying a penny!
Among other deals brokered was with, Med Aditus Pharmaceuticals Ltd, an American based Pharmaceutical plant that is in the process of putting up a Pharmaceutical processing plant of its kind in Kisumu, the best in Sub-Saharan Africa; SkyCat Drones, that up to date is delivering essential medicines and other urgent medical supplies to remote parts of the County using specialized drones; Makasembo Affordable Housing project resultant effect of an MOU signed with LAPFUND; Equity Bank Foundation to increase afforestation in Kisumu County among deals that were successful brokered.
Further, the 9th edition of the pan-African Summit of Local and Regional Governments that attracted 13,000 local and international delegates dubbed as Africities conference, has impactful infrastructure development in Kisumu among many more goodies being enjoyed by the town including agreements entered with organizations such as 01 Talent Africa SA that committed to enhance talent and youth employment in the digital space.
The foundational blocks are in place, many more investment builders should take advantage of the just concluded Nyanza International Investment Conference (2025), building up for a better tomorrow.
Harnessing Human Resources: Kisumu’s Greatest Asset
Kisumu’s human resources represent a tremendous asset for the county.
With educational institutions such as Maseno University and Kisumu Polytechnic, the county is home to a highly educated workforce.
However, despite this abundance of talent, unemployment and underemployment remain significant challenges, especially among the youth.
Many graduates lack the capital to start businesses or face limited job opportunities within the region.
To address this, Kisumu must invest in skills development programs and entrepreneurship grants.
By equipping local youth with the tools to succeed and providing businesses with incentives to hire and train locally, Kisumu can leverage its educated population to fuel economic growth.
In doing so, the county can become a hub for skilled labor, attracting investors who value a talented workforce.
The Blue Economy: Lake Victoria as an Investment Hub
Lake Victoria is not just a natural resource but a goldmine of untapped potential for Kisumu.
As the second-largest freshwater lake in the world, it presents a unique opportunity to drive the blue economy—a sector focused on the sustainable use of ocean and freshwater resources.
Kisumu’s lakefront is largely underutilized, despite the many opportunities it offers in fishing, aquaculture, eco-tourism, and water transport. With the right investment in infrastructure, Kisumu could become a global leader in eco-tourism, attracting tourists with activities such as boat cruises, cultural heritage sites, and fishing tours.
Additionally, sustainable fishing and aquaculture could provide jobs while helping to preserve the lake’s resources for future generations.
Solar Power: Harnessing the Sun for Sustainable Growth
Kisumu’s abundant sunshine makes it an ideal location for solar energy initiatives.
As energy costs continue to rise, solar power can offer a more sustainable and cost-effective solution for businesses and communities alike.
Solar energy could be particularly beneficial to manufacturing industries, offering an opportunity to lower electricity costs, increase sustainability, and reduce reliance on grid power.
Incentives such as tax breaks for solar investments or land grants for solar energy projects could help Kisumu tap into this growing industry.
By prioritizing solar energy, Kisumu could reduce its energy costs and position itself as a regional leader in renewable energy.
Addressing Insecurity: A Secure Environment is Crucial for Investment
A secure environment is a crucial incentive for any investor.
Unfortunately, insecurity remains a concern in certain parts of Kisumu, which could deter potential investors.
However, the county has made significant strides in improving safety and security under Governor Nyong’o’s leadership.
Ensuring that Kisumu remains a safe environment for businesses to thrive should continue to be a top priority.
Organizations such as the Centre for Prisons Reforms and Crime Prevention International are actively working within Kisumu County, to address crime and enhance community safety.
By collaborating with local law enforcement and community groups, these organizations are helping to foster a safer environment, which in turn encourages both local businesses and foreign investors to consider Kisumu as a viable business destination.
The ongoing efforts to improve security are a strong signal that Kisumu is taking the necessary steps to become a secure, stable environment for business growth.
A secure environment encourages local businesses to flourish and attracts both international and domestic investment.
The government can work with local security agencies to ensure that Kisumu remains peaceful, which in turn will make it a more attractive destination for companies looking to invest or re-invest in Kisumu County.
The High Cost of Doing Business in Kisumu
Despite Kisumu’s many opportunities, the cost of doing business need to be re-considered and analyzed by the County structure to attract formidable investment.
One of the main issues is electricity costs, which continue to hinder growth, especially for industries that rely heavily on energy, in the alternative solar energy can be reconsidered.
Transportation costs are another challenge, as the county’s road networks, and other infrastructure require substantial development.
Moreover, businesses in Kisumu face numerous taxes and levies from both the County and national governments, further adding to the cost of doing business.
Without a clear structure of incentives, these financial burdens discourage potential investors, no matter how good investment papers are on the table.
Depoliticization of Investment Opportunities: A Critical Step for Growth
Politicization of investment opportunities, competing political investment interests, can be a major stumbling block to ingenious investment opportunities, especially around our region.
When local political dynamics interfere with business decisions, it can result in missed opportunities and ultimately discourage potential investors.
The case of the Dominion Plant in Siaya is a prime example of how local politics did stifle a good investment project.
The Dominion Plant was a significant investment that had the potential to create hundreds of jobs and boost the local economy.
However, the project faced numerous political hurdles, including interference from local politicians who had competing interests.
As a result, the investment stalled, and the community lost out on a major opportunity for development.
This highlights the need for political stability and good governance to foster a conducive environment for business.
For Kisumu to thrive as an investment hub, politicians must prioritize long-term economic growth over short-term political gains.
Depoliticizing the investment process, ensuring transparency, and creating a stable environment where businesses can operate without fear of political interference is essential.
The Case for Incentives and Support
To unlock Kisumu’s full potential, the county government must create a more attractive business environment by offering incentives for investors. These could include:
1. Tax Breaks and Exemptions: Offering tax incentives to industries such as aquaculture, renewable energy, and eco-tourism would make Kisumu a more competitive investment destination.
2. Infrastructure Development: Investment in reliable energy sources and better transport infrastructure is essential. Public-private partnerships could help improve roads, water transport, and energy supply, making Kisumu more accessible for businesses.
3. Land Grants and Access to Resources: Kisumu could provide favorable terms for land acquisition, especially near the lakefront, where business opportunities are plentiful.
4. Human Resource Investment: Kisumu must provide programs that support skills development and youth entrepreneurship to connect the educated workforce with the jobs and businesses that need them.
Afridata: Providing the Data to Drive Investment Decisions
Kisumu-based data company Afridata plays a critical role in helping investors make informed decisions, dependent on data.
Afridata’s expertise in gathering and analyzing data on sectors like health, education, Crime inference, infrastructure, and energy is crucial for businesses looking to navigate the complexities of the Kisumu market.
Through data-driven insights, Afridata helps identify opportunities and challenges in key sectors, such as solar energy and the blue economy, empowering investors to make sound decisions.
Dependent on data is the way out for an informed investment opportunity.
Conclusion: Kisumu’s Time to Shine
Kisumu has all the ingredients for economic success—abundant natural resources, a skilled workforce, a strategic location on Lake Victoria, and ample sunlight for solar energy.
However, the county must take proactive steps to address its infrastructure challenges, reduce the cost of doing business, and offer clear incentives to investors and dependent on raw data for its futuristic progress.
By leveraging its strengths—human resources, renewable energy, and the blue economy—Kisumu can position itself as a leader in these growing sectors.
Governor Nyong’o’s efforts in organizing investment conferences like Africities and the Nyanza Investment Conference have laid the groundwork for the county’s future economic prosperity.
The time is now for Kisumu to attract the investment it needs to fuel sustainable growth and create jobs for its people.
However, to achieve this, the depoliticization of investments, fight against corruption, and commitment to creating a stable environment for businesses will be key to unlocking Kisumu’s full potential.
