Revenues fell to 8.08 billion shillings ($130.9-million) for January-March 2008 from 17.5 billion shillings last year, a setback for a sector ranked as among the biggest foreign currency earners, according to state-run Kenya Tourism Board.

Tourists stopped coming after violence erupted when then opposition leader Raila Odinga accused President Mwai Kibaki of stealing his way to victory, triggering chaos that claimed at least 1500 lives and displaced hundreds of thousands.

Tourism arrivals dropped by 45 percent to 274 419 compared to 501 863 recorded during the same period last year while bed occupancy rates dropped to an average 30 percent compared with 86 percent in 2007.

"The sector anticipated an estimated 21 billion shillings (earnings) in the 1st quarter in 2008, however with the circumstances that faced the destination, earnings for the quarter declined (...) 8.08 billion shillings," said KTB managing director Achieng Ongong'a.

In addition to shattering Kenya's reputation as a bastion of stability in a region beset by conflicts, the political crisis choked the mainstay tourism and agricultural sectors.

Its treasury has effectively slashed the 2008 growth forecast from seven percent to between 4.5 and six percent.

Former United Nations chief Kofi Annan mediated a power-sharing agreement on February 28, which ended the violence, paving the way for coalition government to be sworn in on April 17 after weeks of bitter negotiations.

AFP