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Growing of fish in cages is currently practiced in Uganda and was first introduced in northern Lake Victoria in 2010. An environment monitoring study was undertaken at Source of the Nile, a private cage fish farm, in Napoleon gulf, northern Lake Victoria. In-situ measurements of key environmental (temperature, dissolved oxygen, pH and conductivity) and biological (algae, zooplankton, macro-benthos) variables were made at three transects: Transect 1- the site with fish cages (WC); transect 2- upstream of the fish cages (USC-control) and Transect 3- downstream of the cages (DSC). Upstream and Downstream sites were located approximately 1.0 km from the fish cages. Environment parameters varied spatially and temporally but were generally within safe ranges for freshwater habitats. Higher concentrations of SRP (0.015-0.112 Mg/L) occurred at USC during February, September and at DSC in November; NO2-N (0.217- 0.042 mg/L) at USC and DSC in February and November; NH4-N (0.0054- 0.065 Mg/L) at WC and DSC in February, May and November. Algal bio-volumes were significantly higher at WC (F (2,780)=4.619; P=0.010). Zooplankton species numbers were consistently lower at WC with a significant difference compared to the control site (P=0.032). Macro-benthos abundance was consistently higher at the site with cages where mollusks and low-oxygen and pollution-tolerant chironomids were the dominant group. Higher algal biomass, concentration of low-oxygen/pollution-tolerant macro-benthos and depressed zooplankton diversity at WC suggested impacts from the fish cages on aquatic biota.