AbstractWater quality is a critical component regulating ecosystem functioning in aquatic habitats, requiring regular monitoring for sustainable ecosystem services. Cage fish farming has the potential to affect water quality because of its rapid increase in many African waterbodies in response to dwindling wild fish stocks. Thus, there is a need for more studies to guide sustainable cage aquaculture in African lakes and reservoirs. This study evaluated the possible effects of cage farming of Nile tilapia (Oreochromis niloticus) on water quality parameters and the trophic state of Kadimu Bay, Lake Victoria, Kenya. Sampling for physicochemical and biological variables, including nutrient load, was conducted from January to October 2021, at five fish cage sites and a control site within the bay. In situ measurements of physical variables were undertaken in the field, while analysis of water samples for nutrient loads, biological and chemical variables was undertaken in the laboratory, following the methods described in APHA (American public health association standard methods for the examination of water and waste water. APHA‐AWWA‐WEF, 2005). The Carlson's Trophic State Index (CTSI) was used to classify the trophic state of the cage sites, while the total nitrogen:total phosphorus (TN:TP) ratio was used to determine the primary productivity limiting nutrient in the bay. The study results indicated electrical conductivity was significantly lower at the control (97.53 ± 4.17 μS/cm), compared to cage sites (105.42 ± 5.32 μS/cm at the Utonga cage site to 112.84 ± 1.94 μS/cm at the Oele cage site), indicating water of relatively lower quality at the cage sites. Similarly, the nitrite concentrations were higher at cage sites (6.35 ± .96 μg/L at the Uwaria cage site to 3.16 ± 2.25 μg/L at the Utonga cage site), and lower at the control site (2.68 ± 1.39 μg/L). In all, 14 physicochemical variables did not vary significantly between the cage and control sites, with nine variables (temperature, turbidity, electrical conductivity, total suspended solids, particulate organic matter, chlorophyll‐a, TP, nitrate and TN) being within the recommended thresholds for aquatic life processes. The bay was evaluated as being in a light eutrophic state, indicating moderate influence of the fish cages on the trophic state of the sites. There was a moderate relationship between chlorophyll‐a and TP concentration at the sampling sites (R2 = .50), compared to a stronger relationship with (R2 = .78). The TN:TP ratios were <10 at the sampling sites, indicating nitrogen was the limiting factor for primary production in the bay. The calculated CTSI suggests that the bay exhibited a light eutrophic state. Overall, although the results of this study showed cage aquaculture is not a current challenge to the water quality of the bay, regular monitoring is nevertheless recommended to inform sustainable aquaculture development in the bay and lake.