This review explores the untapped aquaculture potential in Kenya’s arid and semi-arid lands (ASALs), highlighting the region’s underutilized aquatic resources, including rivers, lakes, and dams. Despite Kenya’s substantial water resources relative to top aquaculture producers like Egypt, aquaculture development in ASALs remains minimal, even though these regions cover 89% of the country. The study assesses ASAL water resource suitability for aquaculture, identifies key challenges, and proposes actionable solutions, drawing lessons from Egypt’s successful aquaculture sector. A narrative literature review synthesizing high-quality scientific and grey literature was conducted. Findings reveal that ASALs possess significant aquaculture potential due to their favorable climate for species like Nile tilapia and African catfish, permanent rivers such as the Tana and Athi, and large reservoirs like the Seven Forks Dams. However, challenges such as water-level fluctuations, pollution, wildlife interference, stakeholder conflicts, and financial constraints hinder aquaculture development. The study highlights policy frameworks, financing models, and best practices from Egypt that Kenya could adopt to strengthen its aquaculture sector in the ASALs. It underscores the importance of integrated water management, stakeholder collaboration, and investment in capacity-building initiatives. Innovative approaches such as cage and pond aquaculture, supported by policies and infrastructure, are crucial for unlocking aquaculture’s transformative potential in Kenya’s food systems and rural economies. This review offers valuable insights for policymakers, researchers, and investors to advance aquaculture as a sustainable, scalable solution for economic growth and food security.