This paper examines the livelihood challenges expe- rienced in Rwanjaba Lakeshore Community during the period of low water level in Lake Victoria between 2004 and 2007 and identifies the livelihood coping strategies that were adopted to ad- dress them. A total of 55 households were randomly sampled and the data collection methods included household questionnaires and participant observations. The data were analyzed using the Statis- tical Package for Social Science （SPSS） and the results presented with the help of descriptive statistics. The livelihood challenges experienced during the low lake water level included fish shortage （34.5%）, household food scarcity （23.6%）, sex for fish （18.2%）, family breakdown （12.7%）, increased theft （7.2%） and accidents due to the exposed rocks in the lake （3.6%）. The livelihood coping strategies adopted to redress the challenges included causal labour （32.7%）, maize roasting （23.6%）, sand mining （18.2%）, selling of snacks （12.7%）, selling household property （9.1%） and resorting shop and market credits （3.6%）. The paper proposes a number of recommendations for improving the livelihood of the community ranging from policy reforms to the diversification of activities.