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Yearbook 1998

Kenya. According to Countryaah, President Daniel arap Moi and his party Kenya's African National Union, the Kenyan African National Union (KANU), entered power in 1998 after defeating the divided opposition in the elections before the New Year. Moi reformed the government in January but retained several of the most corruptly suspected ministers. Since the International Monetary Fund (IMF) halted further loans to Kenya in 1997, the country's economy was under severe pressure, and the new Finance Minister Simeon Nyachae in March passed a austerity package containing reduced government spending and a series of increased taxes. He announced that the salaries of civil servants must be reduced and the state bureaucracy reduced. The World Bank granted a loan of DKK 100 million. dollars to avoid a total collapse in state finances.

1998 Kenya

The economy was also harmed by the continued political and ethnic violence. During the first months of the year, hundreds of people were reported killed and more than 300,000 driven from their homes in the Rift Valley area. Most of the victims belonged to the Kikuyu people, and according to the opposition, it was supporters of President Moi from his group Kalenjin who were behind the violence as revenge for Kikuyu as a rule supporting the opposition in the elections.

At least 247 people were killed and 5,000 injured when the US embassy in Nairobi exploded in an August 7 terror attack. Twelve of those killed were Americans. Some 40 buildings around the embassy were completely or partially destroyed. The suspicions were directed at Saudi terrorist Usama bin Ladin, who has been living in Afghanistan in recent years. Two Muslims - a Yemenite and a Jordanian - who were suspected of being involved in the attack were extradited to the United States.

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