Nairobi — Fellow Kenyans, Distinguished guests, Ladies and gentlemen,

Today we celebrate the greatest day in our annual calendar, the anniversary of our freedom, Jamhuri Day. Thirty-nine years ago we became a free and independent nation, free to manage our own affairs and make our own decisions. It was a defining moment. Our nation was born on this day.

We give thanks to almighty god for helping to guide us to independence and for the many blessings that he has bestowed on our nation in the years that have followed. Jamhuri Day is indeed a day for celebration. Let me therefore send warm greetings to Kenyans wherever they may be attending these celebrations in different parts of Kenya, at home with their families or living outside our country.

A happy, peaceful Jamhuri Day to you all.

Ladies and gentlemen,

It is perhaps difficult for young people today, born in a free country, to imagine those long dark years of colonial rule. The older generation of Kenyans will remember it well. We were told what to think, where to go, where to live and even what to farm, in our own country.

Those of us who believed in the future of Kenya were determined to change this situation. We knew that we faced enormous odds. But we knew that we had truth and justice on our side. We also had a great leader - Mzee Jomo Kenyatta, who became the founding father of our nation. It was a privilege for me and other leaders to work with him. He suffered the indignity of imprisonment in order that we might be free.

His reward, and the reward for all of us who worked so hard for freedom, was to see the Kenya flag raised over our independent nation on the 12th of December, 1963.

Ladies and gentlemen,

We are facing another defining moment in our history. In two weeks time Kenyans will go to the polls to choose a new president and vote in a new Parliament.

On this one day - Jamhuri Day - we stop our election campaigns, set aside party politics and celebrate. But this is also time for reflection. And let me say this, the most important challenge we face reflects on our maturity as a nation. Kenyans must be free to vote in a calm and peaceful atmosphere. And Kenyans, equally, must accept the results that the polls deliver. That is democracy. The world will be watching and judging us accordingly.

If we fail this test, we will surely feel the impact in many different ways, not least in economic terms. Apart from needless loss of life and damage to property, tourism, investment and jobs would be seriously affected. International confidence in Kenya would drain away. We would be seen as just another African failure.

Ladies and gentlemen,

We cannot allow this to happen. The international news media, as we well know, depict Africa as being in a permanent state of chaos, and this image has done immense damage to Africa's development and progress over the years. The positive side is never told. Good news seldom reaches the television screens.

Moreover, there is no understanding that Africa is made up of 53 separate states, each with its own traditions, cultures, policies and priorities. There is little realisation of the problems that affect so many of our people, from poverty to tribalism; and, of course, the divisive borders bequeathed to us by colonialism. The international news media will indeed be waiting to report chaos in Kenya. It will give us great pleasure, once again, to prove them wrong.

Our own news media must behave responsibly too, by reporting and commenting on individuals and events constructively and fairly. Their role is different, but perhaps even more important. Our news media are in a position to influence events within the country. They can inflame situations. They can calm situations. I look to them to exercise restraint and good judgement in their comments over the next few weeks.

Above all I look to the good sense of the majority of Kenyans which has proved itself on many occasions in times of crisis. This, in itself, has been an enormous contribution to the stability that we have enjoyed over the years.

Indeed, our stability has been an example, if not an inspiration, to other less fortunate african countries and, as a result, we have, over the years, helped to guide a number of african countries on the road to peace.

Kenya's pivotal role in this regard is a source of great pride to me. I am proud of the contribution made by our soldiers in united peace-keeping exercises, both in Africa and as far away as Bosnia. In my recent visit to the United States of America I was congratulated on your behalf by President George W. Bush for the positive role our military has played rather than be involved in coups and counter-coups as has sadly been the case in parts of our continent.

I am proud of our reputation as peace negotiators in some of our continent's more complex conflicts. For example, I hope that our efforts will produce peaceful solutions in two neighbouring countries that have suffered from the ravages of civil war. I refer to southern Sudan and Somalia. We have, in recent weeks, hosted peace talks for sudan in Machakos which, slowly, are beginning to bear fruit, despite some setbacks.

These talks resume in January, and we are hopeful that the momentum for peace will be maintained. After talks in Eldoret, the Somali reconciliation process was signed last month, a process which we trust will begin to restore stability to Somalia after a decade of turmoil.

In seeking peaceful solutions to conflict in africa, we are mindful of our responsibilities on the wider international stage. I visited the United States recently and was able to confirm to the people and government of the United States our commitment to combating terrorism.

President Bush and his government expressed solidarity with Kenyan people who have suffered at the hands of terrorism. As he knows we suffered from an appalling terrorist atrocity in Nairobi in August 1998 and again two weeks ago on the 28th November, 2002. May I once more convey our condolences to the families of those innocent Kenyans and Israelis who were killed in Mombasa.

Kenya as a country has no quarrel with any one outside there and we should not be victims. Terrorism should be condemned vehemently by all peace loving people. As for you my fellow Kenyans, I would like to ask you to be vigilant. Report any strangers whom you notice to the police. In keeping quiet, you fail to help avert disaster. Our best defence against terrorism is our collective vigilance. As for our security forces, you must work extra hard to monitor all goings and comings.

You must do your work right from the sub-chief to the Commissioner of Police.

Ladies and gentlemen,

Progress towards eventual peace in both Sudan and Somalia is an indication of the importance of regional bodies, such as IGAD, to which we have pledged strong support. We are also benefiting from our membership of COMESA and finding new and valuable markets for our produce in COMESA countries.

I am also pleased that we have been able to revive the east African community. As we draw ever closer together with our sister states, Tanzania and Uganda, I can foresee the day when we will form a true federation, united not only by ties of language and culture, but by common political and economic interests. I believe that this day is not far away.

My fellow Kenyans,

This, in some ways, is a happy occasion in my political and public service career. It is the last Jamhuri Day when I will address you as your President. We have travelled a long road together. We have experienced fundamental changes in the structure of our society. We have evolved from a one-party into a multi-party democracy. We have overseen a remarkable economic transition, from a protected to a fully liberalized economy.

Our journey together has not always been easy. Difficult decisions have had to be made. But we have advanced and we can be proud of this.

Ladies and gentlemen,

When I said that I would retire at the end of this year from being President of our country, many people refused to believe me even though I emphasised this fact when I took my oath of office in 1998.

Having now accepted that I am indeed retiring, many people have constantly asked me what I plan to do with what is often termed "my tremendous energy". Well, I will tell you now what I plan to occupy myself with in the coming years.

It would be irresponsible on my part to simply go away and sit in the sun or just fade away.

I am proud of our country and I will lend my support to the new administration and give advice based on my experience whenever there is need. As most of you would know, however, I have some issues I feel very deeply about and intend to continue to be engaged in these.

Ladies and gentlemen,

I intend to direct my experience and any energy I still have left to a course which at the moment we hope will always be beyond the borders of this nation. I intend to concentrate my efforts in conflict resolution in the Horn of Africa and eastern Africa. This is a matter I have been involved in for many years, but could not devote as much time as is required to bring peace.

Kenya needs to have peaceful neighbours in order to be secure, peaceful and to prosper. I will be approaching the resolution of conflicts in our region through a regional peace institute to be set up under the Moi Foundation. I will work with people from our region and outside this region. It is abundantly clear to me that no one will come to Africa to resolve these conflicts. We must do so ourselves.

My fellow Kenyans,

When I took over the reigns of power 24 years ago, I was keen to see that children in our society were healthy and that they had food especially protein. Many of you will remember my efforts to give milk to school children. If I have a regret, it is that we have been unable to turn back the remorseless march of poverty by the huge pressures of the surge in population over the past few years.

We have, too, the unexpected impact of the HIV/Aids pandemic, which has taken away so many of our most talented young people.

I therefore plan to spend some of my time working for a better life for children in general, and more specifically for those children who are orphaned by HIV/Aids.

My third important task as I see it now, is to work in the area of alleviating the problems caused to our society by the HIV/Aids pandemic.

You will agree with me that I should be so busy that no one need fear that I would attempt to rule through the next President. I have had my time and will render support to our next President.

My fellow Kenyans,

Whoever succeeds me has great challenges to surmount. The issue of poverty must be tackled with renewed energy. The economy must be returned to the path of vigorous growth. The confidence of the investor community must be restored. We must definitely work harder and collectively to remove corruption from our society.

Currently if the economy is to recover, we have the machinery to combat tribalism but corruption is a social ill which must be tackled by our entire society. Obviously those in government must lead the way but all of us must participate. There is already machinery to combat corruption in government. What is needed is for us to act consciously all the time. Do not pay bribes and do not accept to be bribed.

Play your part each one of you and we can clean up this country. These are not only Kenya's problems, they are Africa's problems. The international community must now give its full support to an increasingly marginalized continent, possibly through the New Partnership for Africa's Development which offers a new development framework for Africa. The strength of NEPAD is that it is developed and initiated from inside Africa - and not imposed from outside.

This has been the source of our own problems with the donor community in recent years.

As I conclude my speech, I would like to remind Kenyans that our country has made commendable progress since independence in 1963. This is despite the negative views of those who are quick to criticise and underrate our many positive achievements. Fortunately, the statistics bear witness to the great strides that we have made.

For instance, in the education sector, the number of primary schools grew from 6,058 in 1963 to over 19,900 today, while enrolment increased sevenfold from 891,103 to over 6,314,600 respectively. There were only 30,120 students in secondary schools in 1963. Today, we have more than 818,247.

And whereas at independence we had one university college with 422 students, today the six public universities alone have a total enrolment of more than 52,900 students. Many of our young people continue to seek opportunities for higher learning in the local private universities and abroad. These developments have resulted in rapid growth of trained manpower in all the key sectors.

Indeed, whereas at independence Kenya faced a serious shortage of trained manpower with only 250 doctors and 600 nurses, today there are over 5,383 registered doctors and 28,000 nurses. There were only about three lawyers at independence. But there are now many lawyers and engineers. During the past few years in particular, the government has had to look for ways to assist Kenyans find jobs abroad.

I am therefore proud of our achievements and the fact that the foundation of our nation's development is now in place. The next challenge will be how to convert the manpower resources and institutional structures that have been set up to achieve our sworn commitment to eradicate poverty, ignorance and disease from our midst in an international setting which is largely hostile to the unique requirements of developing countries.

My fellow Kenyans,

I will soon be bidding you farewell as your President. I will, as is my constitutional duty, be handing over the reigns of office to my successor - your new President. This will be done smoothly. This is my desire and pledge. It has been an extraordinary privilege for me to lead this great nation over the past 24 years, and to serve you, the people of Kenya.

For this I thank you. God bless you all.

Thank you.