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                                   October 23, 1991
Mr. Charles S. Mbindyo
Permanent Secretary
Treasury
P. 0. Box 30007
Nairobi, Kenya
Dear Mr. Mbindyo:
      Re:   Second Coffee Improvement Project (Cr. 2062-KE) -
            Amendment
      We refer to the Development Credit Agreement dated October 16,
1989 between the Republic of Kenya and the International Development
Association, as amended, and to your letter of September 9, 1991
requesting that the percentage of expenditures to be financed under
Catetory 4 be amended to allow 90% of incremental credit to new
borrowers up to December 31, 1992.
      We are pleased to agree to this request.  The table set forth
in Schedule 1 to the Agreement has accordingly been amended to read
as shown in the attachment to this letter.
      With kind regards.
                              Sincerely yours,
                              Callisto E. Madavo
                              Director
                              Country Department II
                              Africa Region
Attachment
Cleared with and cc: Messrs.  Al-Habsy (LEG), Fernando (LOA)
cc: Messrs. Ahmed, Sodhi (AF2AA), Ms. Nguyen (RMEA)
CJones