This report provides a synopsis of the MDGs-related strategies and activities in Kenya since the release of the 2003 Progress Report, which indicated that Kenya was unlikely to achieve most of the goals unless the policy environment was drastically changed. Luckily, the installation in December 2002 of the NARC Government provided the necessary stimulus for the desired changes in the policy environment. The Status report 2005 shows that the policy environment is changing faster than earlier envisaged. The main engine behind the change is the NARC Government’s Economic Recovery Strategy (ERS), a comprehensive policy tool aimed at accelerating economic growth; poverty reduction through job creation; investment in people and social protection; improving governance and the physical infrastructure. It changes the story of hopelessness and lethargy into one of hope and enthusiasm.