When it comes to speaking, the best way how to teach it is through interaction and real life situations. What I liked in a school where I had the teaching practice, they took the students out to restaurant or a shop and asked them to communicate in English only. 

http://iteslj.org/Techniques/Kayi-TeachingSpeaking.html - this page mentions many great activities for speaking, such as: 

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Activities

 

Interviews

Students can conduct interviews on selected topics with various people. It is a good idea that the teacher provides a rubric to students so that they know what

type of questions they can ask or what path to follow, but students should prepare their own interview questions. Conducting interviews with people gives students a chance to practice their speaking ability not only in class but also outside and helps them becoming socialized. After interviews, each student can present his or her study to the class. Moreover, students can interview each other and "introduce" his or her partner to the class.

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Picture Narrating

This activity is based on several sequential pictures. Students are asked to tell the story taking place in the sequential pictures by paying attention to the criteria provided by the teacher as a rubric. Rubrics can include the vocabulary or structures they need to use while narrating.

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Source: https://sites.google.com/site/96saraedu/teaching-speaking

 

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Story Completion

This is a very enjoyable, whole-class, free-speaking activity for which students sit in a circle. For this activity, a teacher starts to tell a story, but after a few sentences he or she stops narrating. Then, each student starts to narrate from the point where the previous one stopped. Each student is supposed to add from four to ten sentences. Students can add new characters, events, descriptions and so on.

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Source: https://sites.google.com/site/96saraedu/teaching-speaking