Siaya Set to Launch Sh140 Million Fish Processing Plant After Delays
Beatrice Atieno Otieno who works as a fish trader explained that the plant will help decrease fish losses which happen when there is no storage space.
Kenedy Komba of Vemric Enterprise said startup delays at the Luanda K’Otieno plant were due to logistical, bureaucratic, and structural issues that had to be resolved before operations could begin. Photo /Courtesy
By Ruth Sang
The government-backed Sh140 million Luanda K’Otieno fish landing and cold storage plant in Siaya County will start its operations this month after reaching a significant milestone for the blue economy development in the region.
The multimillion-shilling fish processing and ice production facility was commissioned in November 2024 by then Fisheries and Blue Economy Cabinet Secretary Najib Balala. The facility design control process was completed by Vemric Enterprise, which took over operations as the private investor in early 2025.
Delays Linked to Compliance and Logistics
The operational startup of the plant operation was delayed because Vemric Enterprise Chief Operations Officer Kenedy Komba explained that essential logistical and bureaucratic and structural challenges needed to be resolved first.
The project advancement occurred after the Siaya County Government provided final approval according to Komba who spoke to the press after a stakeholder meeting which included Lwanda K’Otieno beach community members and fisheries stakeholders. The process required nearly one year to complete because it needed compliance requirements and regulatory hurdles to be resolved.
Komba explained that the company invested additional funds to upgrade the facility to meet international standards, enabling it to qualify for export certification to markets such as the European Union. He mentioned that the Kenya Bureau of Standards (KEBS) requirements for compliance certificate and license acquisition procedures caused another delay.
Power and Equipment Challenges
The facility has experienced operational difficulties which have resulted in multiple setbacks. The ice-making machine breakdowns occurred frequently according to Komba with each repair costing more than $2,000. The investor had to use a diesel generator for power because of ongoing power outages which resulted in daily operational costs exceeding $70 for fuel.
He reported that the major challenges from the past have been solved but the electricity interruptions continue to require permanent resolution through ongoing negotiations with Kenya Power.
Agreement on Fish Pricing
The cost of fish emerged as another primary issue. Komba explained that when the investor arrived local fishermen began selling fish for higher prices because they believed the investors had large financial resources.
He noted that fish retailing at Sh550 per kilo in Nairobi was being sold locally to the company at between Sh700 and Sh800. Fishermen and the company established sustainable pricing for their operations after the two parties held consultations.
Fishermen have reached a pricing agreement with the company according to Komba who stated that the company needs to maintain prices which are both realistic and sustainable for its operations.
Local Jobs and Production Capacity
Vemric Enterprise will fulfill its contract with the Siaya County Government by employing at least 50 percent of its workforce from local communities. The company has filled 60 percent of its positions with local residents who work as casual laborers security staff and filters and trimmers.
The plant’s daily processing capacity reaches 15 tons of fish which will enable the facility to prioritize value addition activities while developing market linkages for its products.
Community Support and Supply Plans
The Rarieda Sub-County Beach Management Unit Coordinator George Otuoma confirmed that stakeholders agreed to support the plant by providing fish to the facility at affordable prices. He explained that Lwanda K’Otieno beach could not supply the required 15 tons which the facility needs for its daily operations.
The company has contacted more than ten beaches throughout Rarieda to obtain additional raw materials which will help establish a continuous supply system.
Optimism Among Local Traders
The project has been welcomed by local fishermen and traders. The facility will help stabilize fish prices because it provides more employment according to fisherman Asha Amari.
Beatrice Atieno Otieno who works as a fish trader explained that the plant will help decrease fish losses which happen when there is no storage space.
The plant will increase fish trade in this area according to her and it will bring benefits to fishermen who come to shore with their catch when they arrive late. The new cold storage facilities provide easy access for late-arriving fishermen.
The Luanda K’Otieno plant introduction will enhance local fish processing capabilities while boosting fish processing through its operations, which will establish Siaya as a central fish processing and export station.
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