Lamu House is a beautiful and well maintained facility, right on the waterfront, just a short walk to the pier where the dhows arrive from the airport or leave for Shela. Our room was lovely. We sprang for the ocean view room, with a lovely balcony overlooking the water. The basics are there: hot showers, comfy bed, and with a luxurious feel. Impressive feature I have not seen anywhere else: a large shower with two separate shower heads -- no waiting! There is no A/C but there was almost always a cool breeze coming through the windows, so it was always comfortable in the room (we were there in late Sept).
The staff is very friendly and super helpful. When there was a little glitch one day and they had forgotten to make up the room, they brought a complimentary bottle of wine (and then happily exchanged it when we said we were tea drinkers).
A friend who visits Lamu frequently told us it's the best hotel in Lamu town, and from what I've seen, I can believe it.
We did not use the pool, so can't comment on that, looked fairly clean. They serve a hearty breakfast, pretty basic, but will keep you fueled well into your day. We only took one other meal there, which was kind of disappointing, especially for the price, but plenty of people seem to like it for dinner, and most nights they had a Swahili band playing. I would definitely recommend Lamu House, and we will almost certainly stay there next time we're in Lamu.