The county government plans to build three satellite bus parks to decongest the town centre.
The roads executive, Thomas Ondijo, said Sh1.5 billion had been set aside to construct the terminuses at Nyamasaria, Mamboleo and Otonglo, the key entry points into the central business district.
"We want to ease traffic flow in and out of Kisumu," Mr Ondijo said, adding that the project was being implemented in partnership with the Kenya Urban Roads Authority.
If the initiative is successful, travellers might have to seek alternative transport into the town centre, such as tuk tuks and boda bodas.
Ondijo said the administration was also grading and repairing roads in an ambitious plan that includes expanding lanes at the junctions of key roads, converting several streets into one-way roads as well as removing some parking bays.
The authorities said they intended the measures to address the traffic jams that inconvenience residents, especially during rush hour.
Reports indicate that the county is planning to spend Sh100 million to instal traffic lights and another Sh100 million for CCTV cameras to enhance traffic surveillance. Kisumu has no traffic lights.
Ondijo explained that foot paths for cyclists and souks would be built to improve road safety and trade.
Boda boda operators asked the county to allocate them designated spots to pick up and drop off passengers to avoid conflicts with the askaris