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Angololo Multipurpose Water Resources Development Project

W.30.02 Water Water Supply Project Structuring Status: Green

Overview

Summary

The Angololo project is a Kenya-Uganda multipurpose water investment on the transboundary Malaba River. It comprises a dam and reservoir, irrigation, potable water supply, flood regulation, fisheries and small hydropower. Preparatory work has been completed and the project is moving through S3A (Project Structuring), including financial mobilisation and implementation arrangements. A Ugandan government development-finance update issued in August 2025 states a construction cost of USD 137 million.

Description

The project will construct a dam of about 30 metres on the Malaba River at the Kenya-Uganda border, creating a reservoir of roughly 31 million cubic metres. The scheme is designed to supply potable water to approximately 270,000 people, irrigate about 4,000 hectares, generate 1.3 MW of hydropower, support fisheries and livestock, regulate floods and droughts, and restore the associated upstream watershed. NELSAP-CU of the Nile Basin Initiative has coordinated the joint preparation process for Kenya and Uganda.

Objectives

Transform subsistence agriculture through reliable irrigation and commercial production; expand safe water supply; generate renewable power; reduce flood and drought risks; support fisheries, livestock and agro-processing; restore degraded catchments; strengthen climate resilience; and deepen transboundary cooperation between Kenya and Uganda.

Revenue model

Revenue from irrigation services, water supply, and hydropower generation

Risks

Implementation and coordination risks

Progress history

  • 2026 Project Structuring planned: Transaction Support & Financial Close
    Preparatory work has been completed, and the project is proceeding through project structuring, financial mobilisation and preparation for construction.
    Financing: Uganda Development Policy and Performance Portal, 20 August 2025, states USD 137 million;
  • 2025 Project Structuring
    April 16-17 2025: BILATERAL SIGNED at Busia Breeze Hotel, Busia County, Kenya. Kenya CS Eng. Erick Muriithi and Uganda State Minister Hon. Beatrice Anywar Atim signed. NELSAP Regional Coordinator Dr. Isaac Alukwe and NBI Executive Director Dr. Florence Adongo in attendance. 40m dam, 31.6 MCM reservoir, 1.3 MW hydropower + 20 MW floating solar potential, 4,000 ha irrigation, 270,000+ beneficiaries. Operational start: 2030. Source: chimpreports.com Apr 2025; nilepost.co.ug Apr 2025; waterdiplomat.org Apr 2025.
    Financing: USD 137 million. AfDB: USD 132.15M core investment. NEPAD-IPPF Special Fund. Resettlement: USD 4.77M (Uganda USD 2.48M, Kenya USD 2.29M). Sweden and Norway funded preparatory studies.
  • 2024 Project Structuring
    Project Structuring (S3A). Uganda cleared draft bilateral agreement through all agencies (Foreign Affairs, Finance, AG). Kenya Cabinet approved project early 2024.
    Financing: AfDB financing confirmed. Uganda submitted formal AfDB financing request and included in budget. NEPAD-IPPF Special Fund co-financing confirmed.
  • 2023 Project Structuring
    Project structuring advanced with the AfDB Board approving a USD 132.15 million loan in November 2023. The Appraisal Report was finalized, detailing financial arrangements and procurement plans.
    Financing: African Development Bank (AfDB) approved financing of USD 132.15 million. The Government of Kenya secured Cabinet approval for its financing share in early 2024.
  • 2022 Feasibility
    Feasibility Stage. NELSAP-CU completed full feasibility study, detailed designs, ESIA, RCAP, and tender documents by July 2022 (34 months; cost USD 1.83M).
  • 2020 Feasibility
    Project Structuring
    Financing: Project cost: USD 137 million. Preparation cost: USD 0.50 million. Preparation funding gap: USD 0.35 million.
  • 2019 Project Structuring planned: Feasibility
    On 17 July 2019, NELSAP-CU together with representatives of Kenya and Uganda officially launched the feasibility phase of the Angololo Project in Entebbe, Uganda. The launch was presided over by the Governor of Busia, Kenya, Hon. Sospeter Ojaamong, and the Director of Water Resources of Uganda, Dr. Florence Adongo, representing the Uganda Minister for Water and Environment. The feasibility phase encompasses a full feasibility study, conceptual and detailed designs, preparation of tender documents, ESIA, and a Resettlement and Compensation Action Plan (RCAP).

    Sources: Nile Basin Initiative - Angololo Water Resources Development Project - https://nilebasin.org/projects/angololo-water-resources-development-project; NELSAP-CU - Full Feasibility of Angololo Project Begins - https://nelsap.nilebasin.org/index.php/en/general-notice/97-nelsap-news/318-full-feasibility-of-angololo-project-begins-as-panel-of-dam-experts-rpsc-formed-community-sensitization-done
    Financing: The feasibility phase is funded by the African Development Bank (AfDB) NEPAD-IPPF for USD 1.5 million, with Kenya and Uganda each contributing USD 75,000, for a total of USD 1.65 million.

Key figures

Dimension Planned Achieved
Area equipped for irrigation (ha) 4,000 ha 0 ha
Area of watershed under improved management 13,410 ha 0 ha
Catchment Area 447 km2 0 km2
Dam Embankment Height 40 m 0 m
Direct Beneficiaries - household water supply 270,000 persons 0 persons
Indirect Beneficiaries 300,000 persons 0 persons
Installed Capacity per Unit 1 MW 0 MW
Reservoir Capacity 0 km3 0 km3

Indicators & milestones

Indicator Value
Agreements for project is signed/Intergovernmental Agreements (IGA)
Kenya and Uganda signed the bilateral agreement for the Angololo Water Resources Development Project on 16 April 2025. Reporting year: 2025. Source: https://nilebasin.org/sites/default/files/2026-01/NBI%20Corporate%20Report%202025.pdf
 1
Feasibility Reports Approved
The Angololo full feasibility study was completed by July 2022. Reporting year: 2022. This records completion of the feasibility-report milestone and does not imply construction commencement.
 1
Technical Design Study (Detailed Project Engineering Design) is Completed
Detailed engineering design, ESIA and the resettlement and compensation action plan were completed by July 2022. Reporting year: 2022.
 1

Key facts

Programme
Programme for Infrastructure Development in Africa (PIDA) - PAP 2
Status
Active
Countries
Kenya, Uganda
Region
East Africa
Start
16 Apr 2025
End
31 Dec 2030
Last updated
11 Aug 2026

Financing

USD million
Preparation cost
0.50
Preparation funding gap
0.35
Capital cost (CAPEX)
137.00
CAPEX funding gap
0.00
Operation cost
2.74
Total cost
140.24

Stakeholders

African Development Bank
AfDB
African Union Development Agency
AUDA - NEPAD
Kenya - Government of Kenya
GoKE
Nile Equatorial Lakes Subsidiary Action Program
NELSAP
Nile River Basin Program
NRBIP

Source: African Infrastructure Database (AUDA-NEPAD)