Intrigues behind the Sh20 billion investment in Yala Swamp
Nyanza
By
Isaiah Gwengi
| Sep 06, 2025
As Siaya County prepares to host its first International Investment Conference next month, a long-standing dispute over Yala Swamp threatens to overshadow the event.
The swamp, which is Kenya’s largest freshwater wetland, has become the focus of competing interests between conservationists, investors and local communities.
The debate has intensified following reports that Dominion Farms Limited that exited in 2019 after years of controversy, may be seeking a comeback.
Dominion had previously invested heavily in rice and fish farming but left amid accusations of land grabbing, environmental degradation and community displacement. Its departure was marked by relief among residents who said they were sidelined in land use decisions.
At the same time, attention has shifted to Lake Agro Limited, the company currently holding a 66-year lease in the swamp.
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The Siaya County Government has accused the investor of failing to develop a viable enterprise, displacing locals, fencing off land and neglecting infrastructure.
Governor James Orengo has hinted at plans to revoke the lease, a move that could spark legal battles.
However, Lake Agro has dismissed the allegations, blaming natural calamities for its slow progress.
In a letter seen by The Standard, the company points to the collapse of a dyke, which it says forced it to spend Sh120 million on repairs.
It further claims to have paid Sh12.8 million in cess to the county, maintained a 17-kilometre road and completed the required baseline studies for a planned Sh20 billion sugar factory.
“Every truck leaving our farm contributes revenue to the county,” the company maintains.
Tensions on the ground remain high, with unknown individuals torching 19 acres of the firm’s sugarcane, raising fears of renewed conflict similar to the unrest that plagued Dominion’s tenure.
The timing of the row has drawn political reactions, with some leaders questioning whether Siaya should hold an investment conference while fighting one of its biggest investors.
“How do you invite investors on one hand, while on the other you are ejecting one from the swamp?” asked Bondo MP Gideon Ochanda.
Former Rarieda MP Nicholas Gumbo has urged the county not to scare away potential investors, arguing that Siaya needs job opportunities for its youth.
Siaya Senate aspirant Zacky Masiro cautioned against repeating Dominion’s mistakes, saying development must not come at the expense of communities.
While speaking in Siaya last weekend, President William Ruto said his administration would engage local leaders on how best to revive the swamp.
“We’ve had issues in the swamp and I will therefore make sure that we sit with the leaders to discuss on how to revive it,” he said.