The capture fisheries sector in Malawi provides employment, income, and food and nutrition for communities around lakes, major rivers and beyond. Yet the use of destructive fishing gears and methods, which has resulted falsely in rising trends in total catch and catch per unit effort beginning 2006 is severely endangering the sustainability of the industry. The most common illegalities in the fishing industry are the use are monofilaments and under-meshed nets. Evidently, rents in the fishery are dissipated as some fishers have started complaining about making loses when they go on fishing expeditions. By estimating the sustainable yield function and using the parameters to adjust the intense fishing efforts accordingly, we found evidence of severe overcapitalization and biological overfishing, with a high likelihood of immediate stock collapse.