Laterite is a ferruginous deposit which is used for road repair and maintenance in tropical regions. The contribution of laterite to the growth of economies globally, regionally and locally cannot be underestimated. Consequently, massive excavations of laterite and their effects are on the increase. Despite the extensive excavations of laterite and its effects globally and regionally, there is little studies on the effects of laterite excavation on household livelihoods at local levels. The main objective for the study was to examine the effects of laterite excavation on household livelihoods in Nyamache Sub-county, Kisii County, Kenya. The specific objectives were to: establish the mode of laterite excavation; examine the state of laterite excavated sites in the study area, examine the environmental effects of laterite excavation on household livelihoods; and assess the socio-economic effects of laterite excavation on household livelihoods. The study employed descriptive survey design. The effects of laterite excavation were treated as independent variables while household livelihoods as dependent variables. Purposive sampling was used in selecting 96 households from a target population of 26458 households using the Alain Bouchard’s formula and table for determining sample size in purposive sampling methods. Purposive sampling and snowballing were used in selecting key informants. Primary data on mode of laterite excavation, state of laterite excavated sites, environmental effects of laterite excavation and socio-economic effects of laterite excavation on household livelihoods was collected using interview schedules, structured questionnaires, observation checklists and photography. Secondary data on environmental and socio-economic effects of laterite excavation on household livelihoods was collected from published and unpublished works which comprised of journals, articles, theses and credible internet resources. Qualitative data was subjected to thematic analysis, coding, generation of patterns and themes. Quantitative data was analyzed using descriptive statistics. Quantitative and qualitative data were integrated and presented by use of statistical tables, graphs, pie charts, percentages, plates and themes. The study established that laterite excavation was rampant in the study area due to its economic benefits to households. The common mode of laterite excavation was open cast method. The study revealed that open pits were prevalent in the laterite excavated areas, there was minimal structured laterite resource utilization and conservation measures in the study locale. The findings further established that laterite excavation led to land pollution, degradation and damage to the biodiversity. Additionally, the unclaimed open pits provided breeding grounds to diseases vectors. The study established that laterite excavation provides material benefits to households that are depended on it. The study recommends that both the national and county governments to regulate the extraction of laterite and put reclamation measures in place for sustainable utilization of laterites in Nyamache sub-county.