How government is planning to complete construction of Sh20 billion dam
Nyanza
By
Olivia Odhiambo
| Dec 11, 2025
The government is fast-tracking plans to complete the construction of the Sh20 billion Koru/Soin Dam.
Deputy Chief of Staff in charge of delivery, Eliud Owalo, wants the project put under the new Infrastructure Fund for quick completion.
"The primary objective of the visit is to ascertain the status and to know the challenges affecting the project. The project has stalled, and we want to establish the challenges affecting the project and pursue it to its logical conclusion," he said during a tour of the project.
He also noted that the contractor had initially been given a deposit of Sh500 million, prompting him to begin the works in 2022.
The contractor had certificates of about Sh890 million, which are yet to be settled, and as a result, the work stalled.
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"But we want to unlock it, having consulted with the relevant agencies concerned. Two issues must swiftly be addressed, including the works going on and the pending issue of compensation of those whose lands were taken for the project," he said.
He added: "Awards were issued, but we have a financial outlay of Sh2.2 billion to sort out. What we have agreed on by way of intervention is the sustainability of the project. As we speak, the state department of water has requested treasury to the tune of Sh900 million for the purpose of this project."
Owalo noted that once the money is disbursed by the treasury, half of it should go to the contractor to pay the accrued arrears, and once he is paid, the works can resume.
He said the other half will go to compensation for workers.
Owalo also called for urgent stakeholder engagement on the project to inform them of the status and way forward.
"The county commissioner of Kisumu is to communicate with his counterpart of Kericho to constitute a stakeholders forum. We want an all-inclusive forum to be held involving all stakeholders," he added.
The forum will include the county governments of Kisumu and Kericho, those whose lands were affected, local leadership, and relevant government agencies.
The project is a multipurpose dam located about five kilometers upstream of Muhoroni town and across the Nyando River that forms the boundary between Kericho and Kisumu Counties.
It has been projected to address the flooding problem on the lower reaches of River Nyando and will also supply 72,000m3/day of water for domestic use and irrigation of 2,570 hectares of land and generation of 2.5MW of hydropower.