Abstract: Informal settlements are ordinarily known to be areas of insecurity, lack of clean water, proper roads and even proper housing patterns, a fact which calls for proper scrutiny in our cities today. Information about these conditions in informal settlements may support the development of appropriate interventions by the government, NGO world and even the international community. This study was about the In-situ slum upgrading programs on the livelihoods of slum dwellers of Manyatta in Kisumu city, Kenya. The objectives of the research were to examine the influence of the slum upgrading in Manyatta on household incomes, to establish the residents’ accessibility to basic necessities as a result of upgrading programs and its outcomes. The study adopted a descriptive research design using the survey method in which questionnaires and an interview guide were put in place to collect data. Slum dwellers of Manyatta were targeted by this study. Key informants consisted of the chief and his two assistants, county government officers represented by a member of county assembly and NGO officials dealing with slum dwellers in Manyatta. Non-probability sampling procedures were used to select the chief, his assistants and the member of county assembly. Simple random sampling techniques were used to come up with the slum dwellers that became part of the study. The study adopted the Participatory Theory of Development by Chambers. This theory was complimented in the study by the Stakeholders Approach theory of Freeman. Data was analyzed by means of the SPSS and presented in frequencies, tables, means, and charts. The study came up with findings that roads, lighting systems in Manyatta, markets within Manyatta, and youth groups operating in the informal settlement area were being improved by both the county government of Kisumu and the national government through funds received from the World Bank. Since water and health were still major problems in Manyatta, the health of the residents had not improved much and besides there were no health centers within the area. Residents accessed health facilities from Jaramogi Oginga Odinga teaching and referral hospital and the Migosi health center. Tangible or visible changes had not been realized. The study recommended that more consultations and outcome measures be put in place to improve conditions in Manyatta. Key Words: Informal settlements, in-situ, livelihoods, slum upgrading, stakeholders, resettlement