Nyong'o has not responded to the accusations.
Residents and lobby groups in Kisumu, led by Mr Chris Owala, have asked Prof Nyong’o to instead reject the proposal and instead settle on one of the government-owned houses in the posh Milimani Esate.
Mr Owala, who is the Director of Community Initiative Action Group Kenya (CIAG), claimed the purchase plan would open an avenue for corruption.
“We are currently struggling with inadequate funds for critical services in the county, diverting money to purchase of a house to the comfort of some individuals is selfish and uncalled for,” he said.
Last week, the County Government of Kisumu put an advert in the local dailies calling for proposals for the construction of the governor’s residence, which would specifically be in Milimani estate’s not less than an acre of land.
Mr Nerry Achar, county executive for finance, said that they had decided that the residence needed to be out of town and along Lake Victoria following consultations.
Mr Achar said they were contemplating putting up the residence near the lake based on the feedback the governor got from locals and foreigners. He denied claims that the residence would cost Sh300 million.
Prof Nyong’o has home in Ratta, Seme, at least 60 kilometres from Kisumu's central business district.
Mr Achar said currently the national government is paying rent for the governor, his deputy Mathews Owili and Kisumu Speaker Onyango Oloo in Kisumu.
“We thought this was going on up to 2019 but when we checked, we found out that by October this year, the national government will stop paying rent for the three. We then decided to buy a house instead,” said Mr Achar.
“We can then develop the other plots we have to return the amount we used to purchase the house.”
He said that they had thought of renting but dropped the idea because it would be expensive in the long run.
“The former mayor’s house is sitting on a Sh100-million piece of land and there were renovations that cost the previous government Sh20 million. People believe it was renovated and are wondering why Prof Nyong’o won’t occupy it. The truth is money was spent yet no refurbishment was done. These are some pending bills we are dealing with,” said Mr Achar.