The Kisumu administration has postponed the official elevation of Muhoroni as a town after thousands of residents were affected by demolitions by Kenya Railways.
John Oywa, the Kisumu chief of staff and acting Public Communications chief officer, said they put the event off to concentrate on humanitarian assistance to affected families.
Governor Anyang' Nyong'o has protested to the management of Kenya Railways over the demolitions and is due to meet the corporation's managing director.
More than 3,000 families affected in Kibos area are in a humanitarian crisis following downpours on Tuesday night. Many were rained on and forced to sleep with their children on wet mattresses in their muddy tents. The families currently reside on an 18-acre plot given by the county government.
In Muhoroni and Koru, the county is still looking to resettle displaced people. Oywa said a new date for the Muhoroni event will be announced later.
The county government has upgraded Maseno and Ahero to town status. The move will help increase funding to them and regulate development and provision of utilities.
The administration had earmarked five urban centres for the upgrade. Muhoroni, Katito and Kombewa are still in the queue.
Governor Nyong'o had earlier noted that the growth of satellite towns will not only bring services closer to the people, but also create jobs for thousands of people. This will also reduce pressure on the City of Kisumu.
The Constitution says an area shall be eligible for the grant of the status of a town if it has a population of at least 10,000 and can demonstrate economic, functional and financial viability.
The area must have an integrated development plan, the capacity to effectively deliver essential services to residents and have sufficient space for expansion.
After the upgrade, the county will set aside annual allocation to cater for water and sewerage, road and lighting infrastructure, solid waste management and tourism development of the towns.
