Oyugis Emerges as Homa Bay’s Fastest-Growing Economic Hub

Oyugis Town has rapidly transformed into Homa Bay County’s leading economic hub, outpacing the traditional administrative capital, Homa Bay Town, in infrastructure and growth. 

Its strategic location along the Ahero–Isebania Road and its connections to Kisii and Kisumu have helped it evolve into a commercial centre drawing traders and residents from across the region. Once a modest market, Oyugis is now one of the fastest-growing urban areas in western Kenya. 

In recent years, its development has been marked by a rise in modern infrastructure, a growing skyline, and a surge in business activity, positioning the town as a key player in the county’s economy. This growth has prompted a shift in local government offices, with administrative functions moving from Kosele to Oyugis in search of better facilities and accessibility.

The town is a focal point for trade, with twice-weekly markets attracting traders from as far as Sondu and Rangwe. The dual carriageway completed under former President Uhuru Kenyatta has eased traffic and enhanced Oyugis’s role as a regional transport hub, while improved feeder roads to Kendu Bay and Rangwe have strengthened its connectivity. 

Agriculture remains a cornerstone of the local economy, with neighbouring villages supplying produce such as fruits, vegetables, and dairy, fuelling the rise of small enterprises and creating job opportunities. The growth of financial services in Oyugis reflects its economic success. 

Several banks and savings cooperatives have opened branches in the town, which now generates up to Sh5 million in monthly revenue. This contribution is significant, helping Homa Bay County meet its financial targets. In the last financial year, the county raised Sh1.2 billion, with Oyugis playing a pivotal role.

The town’s transformation is evident in its physical landscape. Modern buildings and street lighting have replaced the traditional mud huts and grass-thatched roofs. Investment from entrepreneurs, particularly from Indian and Somali communities, has driven economic activity, and extended trading hours have become commonplace. 

Affordable construction materials, such as locally produced bricks, have contributed to a housing boom, providing opportunities for residents and attracting workers from various sectors. However, challenges persist. Oyugis lacks a public cemetery, and waste management remains a significant concern, with illegal dumping common in some areas. 

Local authorities are addressing these issues, with the World Bank-funded Kenya Urban Support Programme working to improve infrastructure, including feeder roads and market facilities.