Kenya Pipeline Company has said it has contained the oil spill near Obunga estate, Kisumu, after a pipe burst.
The company urged residents to keep off to allow repairs and avert disaster.
Kisumu Central sub-county police commander Anthony Maina said the situation had been contained after KPC technical team did some repairs.
He said no casualty was reported and they have launched investigations into the incident.
"We got information at about midnight about the oil spillage," Maina said.
He said they were forced to close the busy Kondele-Airport bypass but it was later opened for use after the situation was contained.
Kisumu Central sub-county deputy commissioner Hussein Alison Hussein said a multi-agency team, including the Kisumu fire fighting department, responded swiftly.
An excavator was brought in to help prevent the spillage from getting into the nearby River Kisat and finally into Lake Victoria, where it would endanger human and aquatic life.
KPC is yet to establish the number of litres of fuel that has been lost following the spillage.
In a statement, KPC MD Macharia Irungu said the incident has not affected the availability of petroleum products in the county and region.
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