Ethnic divisions account for many of Kenya's problems.
During the early 1990s, tribal clashes killed thousands and left tens of thousands homeless. Ethnically split opposition groups allowed the regime of Daniel Toroitich arap MOI, in power since 1978, to be reelected for a fourth term in 1997 in balloting marred by violence and fraud. Kenya is well placed to serve as an engine of growth in East Africa, but its economy is stagnating because of poor management and uneven commitment to reform. In 1993, the government of Kenya implemented a program of economic liberalization and reform that included the removal of import licensing, price controls, and foreign exchange controls. Growth slowed in 1997-99 however.