Nakuru governor Lee Kinyanjui said 450 homes had been hit by the flood waters and safety engineers had been sent to inspect three other dams nearby.
The breach happened in the town of Solai, which is approximately 120 miles northwest of the capital of Nairobi, late on Wednesday. Local officials say neither the extent of the damage nor the death toll are yet clear.
The water has caused huge destruction of both life and property.
Red Cross says the rescued people have been rushed to various health facilities in Subukia and Rift Valley General Provincial Hospital.
The local people are now concerned about the condition of the other two dams, which are also reportedly full.
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Samuel Gachobe, who represents the area in Parliament, said the government was trying to identify the missing, and was providing food, blankets, bedding and medical care to people who had fled.
Statistics released by the Interior Principal Secretary Karanja Kibicho on Wednesday indicated that 222,456 people have so far been displaced as a result of ongoing rains in flood-prone areas.
As the rains worsen, the need for humanitarian assistance to victims becomes more pressing. Military helicopters and personnel have for the past week been deployed to rescue people marooned by the flooding. Caught between different extremes, millions of Kenyans are in dire straits.
Its walls reportedly caved in because of high volume of water following heavy rains in recent months. On Wednesday, the United Nations office for the co-ordination of humanitarian affairs reported a death toll of 118, up from 100 on May 4.