Kisumu was ideally located on the shores of Lake Victoria at the cusp of the Winam Gulf, at the end of the caravan trail from Pemba, Mombasa, Malindi and had the potential for connection to the whole of the Lake region by steamers. In July 1899, the first skeleton plan for Kisumu was prepared. This included landing places and wharves along the northern lake shore, near the present-day Airport Road. Demarcations for Government buildings and retail shops were also included in the plan.

Another plan was later prepared in May 1900, when plots were allocated to a few European firms as well as to Indian traders who had travelled to Kisumu on contracts to build the Uganda Railway and had decided to settle at the expanding terminus. The plan included a flying boat jetty (now used by the Fisheries Department). In October 1900, the 62-ton ship SS William Mackinnon was reassembled and registered in Kisumu, and made its maiden voyage to Entebbe, marking the beginning of the Lake Marine Services. The SS Winifred (1901) and the SS Sybil (1901) were later added to the fleet in 1902 and 1904, respectively. On Friday, 20 December 1901, the railway line reached the Kisumu pier, with the centre adopting a new name, Port Florence.

By February, the railway line had been opened for goods and passenger transportation. Kisumu was also privileged to host the first flight in East and Central Africa; the current police workshop was the first hangar in Kenya and entire East Africa. Before the jet airline era, the city was a landing point on the British flying boat passenger and mail route from Southampton to Cape Town. Kisumu also linked Port Bell to Nairobi.