This paper highlights the results of a 12 month's ecological study of macrophytes and their role in the economy of the lower Sondu-Miriu river of Lake Victoria. A total of 34 species of aquatic macrophytes were identified. These were grouped as emergent, floating leaved, free floating and submersed. The major community type identified were dominated by Cladium jamaicanse (Crantz) Kurk., Cyperus paprus (L.) and Cyperus latifolius (Poir). The study observed an over dependence on macrophytes by the local community for the supply of bedding, grazing fields, fuel, roofing and other building materials. The white (heart) of Typha shoot, Nile cabbage (Pistia stratiotes and a legume solanum nigrum traditionally known as "osuga" are used as vegetables by local community. The only source of protein in this arid region is the fish caught in the swamps and birds which inhabit the swamp. The swamp provides the only source of green pasture in the dry season for the animals. An export oriented economy has developed involving mat making and basket weaving with exports reaching as far as Japan. The study proposes a rational and sustainable exploitation of the littoral zone to support the adjacent rural community