Kisumu lakefront booms as hidden tourism gems transform region
Business
By
Sharon Owino
| Apr 09, 2025
="https://www.standardmedia.co.ke/counties/article/2001472626/lake-victorias-suffocating-lakefront">Kisumu’s lakefront< is witnessing unprecedented growth and ushering in new opportunities to exploit the lucrative tourism potential that had remained grossly underutilized over the years.
A stroll along the beachlines stretching from Dunga to Kisumu West reveals hidden gems that are slowly turning the area into a tourism masterpiece.
Here, several hotels have come up while existing ones have been refurbished to give local and international tourists the perfect place to enjoy the lake’s ambience.
As this happens, a wind of change by private investors and the county government to set up new establishments along the shores is breathing new life in the region’s leisure industry.
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For instance, plans by the county government to construct a marina are at an advanced stage through a World Bank-funded project.
According to city manager Abala Wanga, the plan is part of the broader objective of transforming the lakeside city into a tourism goldmine and a major destination in the Western Kenya economic circuit.
“Dunga should be cleaned and the canteens modernized with a Marina, while Hippo Point should be expanded to a park into the wall front,” said Wanga.
In Dunga, the small beach is a beehive of activities daily and has evolved into a bustling frontier of investment, tourism, and rapid urban development.
The transformation is being led by a surge in new hotels, reshaping the city's hospitality landscape and signaling a broader economic awakening in Kenya’s western corridor.
Along the stretch, several hotels, some barely 30 meters from each other, dot the shoreline and attract hundreds of leisure lovers during the weekends. In other days of the week, they are bustling with activity, with some complete with live bands to entertain revellers.
In the past five years, Kisumu has witnessed a remarkable boom in hotel construction, with both local and international investors pouring in capital.
Boutique hotels offering panoramic lake views stand beside larger hospitality chains aiming to capitalize on the city’s growing status as a destination for business and leisure travelers.
The driving force behind this growth includes improved infrastructure, such as the expansion of Kisumu International Airport and the revitalization of lake transport, alongside a strategic push by the county government to market Kisumu as a key conference and tourism hub.
For local business owners, the transformation has brought a mix of optimism and caution.
"It has been exciting to see new life along the lakefront," says Jagpal Sandhu, proprietor of the popular Dunga Hill Camp.
"There is more foot traffic, especially over the weekends. We have seen an increase in both local and foreign visitors. But with that comes pressure on the environment, on the roads, and on the cultural fabric of this place," he noted.
Here, hundreds of visitors throng the place almost on a daily basis to catch a glimpse of the breathtaking sunset as it touches the lake from a distance.
But it is not alone. Atella Beach Resort, Hideout, Milimani Beach resort, and the famous Hippo Point lie in close proximity and are also a magnet for those seeking to refresh themselves.
A few meters from the ="https://www.standardmedia.co.ke/health/index.php/golf/article/2001515196/riaroh-outshines-rivals-to-win-nyanza-golf-clubs-monthly-mug">Nyanza Golf Club< lies another long line of new and refurbished entertainment joints with open spaces for sitting.
Several residents and fisherfolk told The Standard that they are reaping big from the developments. They believe additional investments will revive the economy further.
"There are more hotels buying our fish, yes," says Tom Otieno, a long-time fisherman. "But we also worry about water pollution and losing access to some parts of the lake."
Boda boda riders, ever-sensitive to shifting economic tides, say they have benefited from increased business.
"We make more trips now carrying tourists, hotel workers, and even supplies," notes James Owiti, who operates along the lakefront route.
However, he added that the roads are getting crowded and need more regulation to stay safe.
The hospitality boom has created jobs in construction, food supply, cleaning, and customer service.
Local artisans and tour guides have also found new opportunities.
Hotels are sourcing produce, fish, and crafts locally, which injects money directly into the community.
"We have been supplying vegetables to two new hotels," says Mary Achieng, a smallholder farmer from Nyamasaria.
"It’s steady business, and it’s helped us grow," she added.
However, there are concerns about rising land prices, potential displacement, and the strain on local infrastructure.
Environmentalists warn that if unchecked, hotel development could damage the fragile Lake Victoria ecosystem, already under stress from pollution and invasive species.
Local business owners, while acknowledging the economic boost, also face challenges brought by the rapid growth.
Some entrepreneurs have benefited from increased demand for goods and services, but others struggle to keep up with rising rents and competition from larger establishments.
Small eateries and independent guesthouses, which once thrived on local tourism, now find themselves competing with well-funded hotel chains.
"Business is better, but the cost of doing business is also higher," explains David Ouma, who runs a small café near the lake.
"More tourists mean more customers, but also higher rent and expenses. Some of us are being pushed out."
To navigate these shifts, some businesses are adapting by partnering with new hotels to supply products or offer unique experiences, such as cultural tours and locally inspired cuisine.
However, others fear that without proper urban planning, unchecked development could lead to the displacement of long-established businesses and communities.
"Development is welcome, but it has to be thoughtful," says Sandhu. "We need to preserve what makes this place special. If we lose the lake, the culture, and the peace, then what are we really building?"
The development comes at a time when other private investors are also eyeing to transform the region’s waterfront into a blue economy masterpiece.
A few meters away from the Kisumu International Airport, a Sh120 billion project is also gaining momentum.
The project, spearheaded by GulfCap Real Estate, is backed by Mombasa businessman Suleiman Shahbal and is expected to transform Kisumu city's skyline with a state-of-the-art marina or a small port for leisure with hotels, restaurants, and bars, luxury residences, and world-modern amenities.