With the inauguration of Mwai Kibaki as its new president, Kenya has begun to move in a new political direction. Kibaki is only the third person to serve as the east African nation's president, and his victory meant defeat for the political party that has ruled Kenya since its independence from Britain in 1963.

Throughout the last few decades, the Kenyan government was often characterized by widespread corruption that crippled the nation's economy. But the 71-year-old Kibaki has said he'll take the nation down a different road.

"My government decisions will be guided by teamwork and consultations," he said the day he took office. "I am calling upon all of you to come and fight corruption and agree to support the government in fighting corruption."

The country's economic and political decline

Kenya is a country of 30 million people bordering the Indian Ocean and located between Tanzania and Somalia. In the past, it relied heavily on farming and tourism to support the economy.

The country's first president was revolutionary hero, Mzee Jomo Kenyatta, who helped gain independence from British colonial rule. Kenyatta chose his cabinet from a diverse number of tribes to maintain balance. He also instituted land reforms, which gave small amounts of land to a number of farmers. After Kenya's independence, Kenyatta's popularity remained high until his sudden death in 1978.

Daniel arap Moi, his vice president, took over and held the office for 24 years until he stepped down last year.

During Moi's tenure, the economy began to fail and political corruption and human rights abuses became more common, according to the CIA's World Factbook. During the presidential elections in 1992 and 1997, protests were met with violence and hundreds of Kenyans were killed. Then from 1999 - 2000, the country experienced a severe drought, which caused water and energy to be rationed and reduced farming output.

The steady decline led to crippling unemployment levels. Half of the population lives in poverty and the World Bank and International Monetary Fund, two organizations that loan money to developing nations, halted hundreds of millions of dollars of loans to the country because of government mismanagement and lack of reforms. A health crisis also rages in Kenya, with the rate of adult infection of HIV/AIDS climbing as high as 30 percent in some areas.

Terrorism begins to surge

In the past decade, an increase in radical Muslim activity in the region has alarmed Kenyan and U.S. officials.

In 1998, some 200 Kenyans were killed in a truck bomb attack on the U.S. embassy in Nairobi - an attack authorities have linked to the al-Qaida terrorist network. In November 2002, an Israeli-owned hotel was bombed and terrorists tried to shoot down an Israeli plane. U.S. and Israeli authorities say those attacks are also likely the work of al-Qaida, however three alleged Kenyan radicals have also been linked to the incidents.

Muslims make up only ten to 15 percent of Kenya's population, but according to Khelef Khalifa, director of Muslims for Human Rights in Mombasa, the group often felt neglected and discriminated against during Moi's rule. He said radical thought has grown because of raids in Muslim communities after the embassy bombings.

A new president brings hope

Kibaki and his party, National Rainbow Coalition (NARC), won the recent election with 63 percent of the vote - a number observers say signals a desire among Kenyans for a new brand of leadership.

"They had to get rid of this very corrupt worn-out tired party that's been in power for 40 years," said Herman Cohen, a professor at Johns Hopkins University and president of a company that specializes in African issues.

Kibaki's presidency has experienced its share of problems early on. Less than one month after he took over, a plane crash killed one of his cabinet members and injured several others, including the first two women ever elected to the Kenyan government.

The new administration has begun to enforce a law that provides free education in primary schools and has proposed providing free public health care, reforming the public transportation system and shedding light on past human rights abuse cases.

Michael Chege, a professor at University of Florida and a native Kenyan, said that once people in the international community see that the government is trying to reform itself, humanitarian aid and loans to Kenya -- the largest economy in east Africa -- will begin again. Chege said he is confident that Kibaki is the leader to help stabilize the country once again.

"He's man for the moment," Chege said. "Somebody that can unite people that believe in different things towards a common good, towards the good of the country."

The World Bank recently said that it would begin to provide aid again to Kenya once it sees some visible changes in the way the government is run.

-- By Raven Tyler, NewsHour Extra