Aquaculture company Victory Farms plans to expand its Sh750 million cage-raising tilapia project in Lake Victoria amid growing demand for the white meat, regulatory filings show.
The project, which will be implemented in the new concession areas around Sindhu, Homa Bay County, will expand the company’s existing sustainable tilapia cage production by approximately 30,000 tonnes per year.
“Proposed expansion of sustainable commercial cage farming of tilapia with an approximate production of 30,000 metric tonnes per annum in new concession blocks at Letari, Gyudindi, Njeri, Nyagwethi, Kamugu, Otrere and Kisigi shores of Lake Victoria in Soba South County of Homa Bay County,” Lakers Consultancy Limited said in its proposals submitted to the National Environment Management Authority (NEMA) on behalf of Victory Farms.
Cage fish farming involves creating a suspended net pen in the lake that holds young fish. The fish are fed and cared for in the pen. The harvest cycle for cage fish is approximately one year per cage.
The project proponent will use floating surface cages in the project. The project proponent will use modern HDPE cages made of high density polyethylene which has a plastic nature and is more durable. They will be 30 meters in diameter and 10 meters deep due to the depth of the lake bottom which is more than 30 meters.
“The difference between the bottom of the cage and the bottom of the lake is 20 metres, which makes the oxygen cycle ideal for young tilapia,” she added.
The expansion plans come on the heels of a massive funding drive by Victory Farms to expand its operations in Africa. In April 2023, the company received $35 million (Sh4. 5 billion) from venture capital investors to expand its operations in Kenya, Rwanda, Ethiopia and Uganda.
The funds were raised by investors led by Creadev, a global venture capital firm and growth investor, to help the company create more jobs, support businesses in the supply chain and provide nutritious meals across the region.
Other investors include Acumen Resilient Agriculture Fund, DOB Equity, Endeavor Catalyst Fund, and Hesabu Capital.
Victory Farms founders and angel investors including Joseph Rahman, Steve Moran, Kamran Ahmed and Hans den Beaman also invested in the deal.
Cage fish farming has gained significant momentum in Lake Victoria, with more than 4,000 cages in place, concentrated on the Kenyan side of the water body.
Many of the cages are individually owned although more companies like Victory Farms are looking into lake aquaculture opportunities.
However, there has been pressure to regulate cage fish farming in the lake as more groups enter the business with the aim of getting better returns.
The Kenya Marine and Fisheries Research Institute warns that sustainable cage farming requires strict adherence to sound farming procedures as any disruption could lead to environmental degradation, resulting in changes in water quality and biodiversity.
Kenya’s share of fish production from Lake Victoria fell to 70,300 tonnes in 2023, from 86,400 tonnes in 2022, according to data from the Kenya National Bureau of Statistics.
The statistics agency attributed the decline largely to increased pollution in the lake and the spread of illegal and unregulated fishing.