The US president has urged Kenya to
hold "visible" trials to tackle corruption, which he said could be the
"biggest impediment" to further growth.
After talks in Nairobi,
President Obama and Kenyan counterpart Uhuru Kenyatta said they were
"united against terrorism" and efforts to deal with it.
But the two leaders differed sharply in their positions on gay rights.
While Mr Obama spoke strongly against discrimination, Mr Kenyatta said Kenya did not share the same values.
Earlier Mr Obama praised Africa's economic and business potential in a speech.
"Africa
is on the move... People are being lifted out of poverty, incomes are
up (and) the middle class is growing," he told a business summit. BBC Africa Live: Obama in Kenya as it happened
He also visited a memorial for those killed in the 1998 US embassy bombing.
The trip, which began on Friday, is Mr Obama's first visit as president to the country where his father was born.
'Breaking the habit'
Barack Obama said he was encouraged by statements President Kenyatta had made about the need to root out corruption.
People
were being "consistently sapped by corruption at a high level and at a
low level" and there was a need for "visible prosecutions," Mr Obama
said, to show Kenyans that action was being taken.
"They don't have to be a forensic accountant to know what is going on."
Police
officers and civil servants had to be paid properly to help curb
corruption, but sometimes it just required "breaking the habit".
Analysis by Milton Nkosi, BBC News, Nairobi
Unlike some other Western leaders, Mr Obama neither lectured Mr Kenyatta nor patronised him at their joint press conference.
Instead,
he spoke like a friend - that Kenya needed to stamp out corruption to
attract investments and to make life easier for its own businessmen who
have to pay bribes. And Mr Obama pointed out that the US was also once
badly affected by corruption, but it had overcome the problem, giving
hope to Kenyans.
What Kenya needs, Mr Obama said, were "visible
prosecutions". Will Mr Kenyatta make sure that this happens or will it
be business-as-usual after Mr Obama leaves?
As for gay rights, Mr
Kenyatta left the clear impression that Kenya will not legalise
homosexual relations. Mr Obama is likely to continue to speak in favour
of gay rights, but there was no indication that the issue could cause a
serious rift between the two countries.
President Obama had dinner with his Kenyan relatives in Nairobi on Friday evening
Crowds waited to catch a glimpse of the US president in Nairobi on Saturday
The US and Kenyan leaders held talks on a range of issues in Nairobi on Saturday
President Obama had told the
BBC he would deliver a blunt message on gay rights when he travelled to
Africa - and defended his stand in response to a question at the joint
news conference.
"If somebody is a law-abiding citizen, who is
going about their business... and not harming anybody, the idea that
they are going to be treated differently or abused because of who they
love is wrong. Full stop," he said.
But Uhuru Kenyatta said gay rights were not "foremost" in the minds of Kenyans.
There were "some things that we must admit we don't share - our culture, our societies don't accept," he said.
"It's very difficult for us to be able to impose on people that which they themselves do not accept."
Media captionUhuru Kenyatta on gay rights: "There are things that our culture, our society does not accept"
In other comments, President Obama said:
The US is providing additional funding and assistance to Kenya's security forces for counter-terrorism
The US and Kenya are working to establish direct flights
The
Obama administration will propose a federal rule banning the sale of
almost all ivory across state lines as part of efforts to fight poaching
in Africa.
Barack Obama has arrived in Kenya on the first visit to his ancestral home as serving US president.
During his two-day visit Mr Obama will hold talks with Kenyan President Uhuru Kenyatta and other top officials.
Trade
will feature strongly, but Mr Obama also said he would deliver a "blunt
message" to African leaders about gay rights and discrimination.
The trip to Kenya and then Ethiopia is also designed to show US commitment to fighting terror in East Africa. BBC Africa Live updates from Kenya
President Obama's Air Force One touched down at Nairobi's international airport shortly before 20:10 local time (17:10 GMT).
Arriving
in the country where his father was born, he was greeted at the airport
by President Kenyatta with a handshake and embrace.
Mr Obama also hugged his half-sister Auma, who then travelled in the
presidential limousine to the hotel where the US leader is staying.
Crowds cheered the motorcade along its route.
At dinner, the
president was joined by more relatives, including the woman known as
"Granny" or "Mama Sarah", who helped raise his now-deceased father.
Security is tight. The Kenyan capital is in lockdown, many streets are closed and people are opting to stay at home.
Mr
Obama, the first sitting US president to visit Kenya, will hold talks
on trade and investment, and also security and counter-terrorism.
He also becomes the first US leader to address the African Union when he travels on to Ethiopia on Sunday.
Media captionKenyans tell the BBC their feelings on President Obama's comments about gay rights
Analysis: BBC's Alastair Leithead in Nairobi
Kenya
means a lot to President Obama - here they call it his homecoming - and
he has both his heritage and his legacy to consider late in his final
term.
His first engagement is a global entrepreneurial summit -
better business and trade, not aid, are how he sees many Africans
lifting themselves out of poverty.
But security remains America's
top priority while al-Shabaab can still kill students in their
dormitories. And just two years after the Westgate shopping centre
attack, security co-operation will dominate discussions.
Mr Obama has promised tough talking on good governance, human rights and corruption.
President
Kenyatta's International Criminal Court indictment has been dropped,
but his deputy is still facing charges over post-election violence.
What's more, he's warned America not to lecture Kenyans on gay rights.
The
interaction could be awkward, and with rights firmly on the American
agenda there may be more to this trip than just smiles and photo
opportunities. Mr
Obama expanded on his hopes for the Africa trip in a wide-ranging
interview with the BBC's North America editor Jon Sopel before he left
Washington. President Obama also said:
This
is Mr Obama's fifth trip to Africa as president, but despite his close
family links to Kenya, he has faced criticism in some African countries
over the legalisation of gay marriage in the US.
However, the president told the BBC he would not fall silent on the issue.
The
US leader also agreed that some African governments, including Kenya's,
needed to improve their records on human rights and democracy.
However, he defended his decision to engage with and visit those governments.
"Well,
they're not ideal institutions. But what we found is, that when we
combined blunt talk with engagement, that gives us the best opportunity
to influence and open up space for civil society."
Media captionPresident Obama told the BBC he would deliver a blunt message on gay rights when he travelled to Africa
US-Africa ties
"I'll
be the first US president to not only visit Kenya and Ethiopia, but
also to address the continent as a whole, building off the African
summit that we did here which was historic and has, I think, deepened
the kinds of already strong relationships that we have across the
continent."
Giving the young opportunities
"A
while back, when we started looking at strategies to reach out to the
Muslim world, to reach out to developed countries, a common theme
emerged, which was people are not interested in just being...
patronised. And being given aid. They're interested in building
capacity."
On China
"We
welcome Chinese aid into Africa. I think we think that's a good thing.
We don't want to discourage it. As I've said before, what I also want to
make sure though is that trade is benefiting the ordinary Kenyan and
the ordinary Ethiopian and the ordinary Guinean and not just a few
elites."
Barack Obama has arrived in Kenya on the first visit to his ancestral home as serving US president.
During his two-day visit Mr Obama will hold talks with Kenyan President Uhuru Kenyatta and other top officials.
Trade
will feature strongly, but Mr Obama also said he would deliver a "blunt
message" to African leaders about gay rights and discrimination.
The trip to Kenya and then Ethiopia is also designed to show US commitment to fighting terror in East Africa. BBC Africa Live updates from Kenya
President Obama's Air Force One touched down at Nairobi's international airport shortly before 20:10 local time (17:10 GMT).
Arriving
in the country where his father was born, he was greeted at the airport
by President Kenyatta with a handshake and embrace.
Mr Obama also hugged his half-sister Auma, who then travelled in the
presidential limousine to the hotel where the US leader is staying.
Crowds cheered the motorcade along its route.
At dinner, the
president was joined by more relatives, including the woman known as
"Granny" or "Mama Sarah", who helped raise his now-deceased father.
Security is tight. The Kenyan capital is in lockdown, many streets are closed and people are opting to stay at home.
Mr
Obama, the first sitting US president to visit Kenya, will hold talks
on trade and investment, and also security and counter-terrorism.
He also becomes the first US leader to address the African Union when he travels on to Ethiopia on Sunday.
Media captionKenyans tell the BBC their feelings on President Obama's comments about gay rights
Analysis: BBC's Alastair Leithead in Nairobi
Kenya
means a lot to President Obama - here they call it his homecoming - and
he has both his heritage and his legacy to consider late in his final
term.
His first engagement is a global entrepreneurial summit -
better business and trade, not aid, are how he sees many Africans
lifting themselves out of poverty.
But security remains America's
top priority while al-Shabaab can still kill students in their
dormitories. And just two years after the Westgate shopping centre
attack, security co-operation will dominate discussions.
Mr Obama has promised tough talking on good governance, human rights and corruption.
President
Kenyatta's International Criminal Court indictment has been dropped,
but his deputy is still facing charges over post-election violence.
What's more, he's warned America not to lecture Kenyans on gay rights.
The
interaction could be awkward, and with rights firmly on the American
agenda there may be more to this trip than just smiles and photo
opportunities. Mr
Obama expanded on his hopes for the Africa trip in a wide-ranging
interview with the BBC's North America editor Jon Sopel before he left
Washington. President Obama also said:
This
is Mr Obama's fifth trip to Africa as president, but despite his close
family links to Kenya, he has faced criticism in some African countries
over the legalisation of gay marriage in the US.
However, the president told the BBC he would not fall silent on the issue.
The
US leader also agreed that some African governments, including Kenya's,
needed to improve their records on human rights and democracy.
However, he defended his decision to engage with and visit those governments.
"Well,
they're not ideal institutions. But what we found is, that when we
combined blunt talk with engagement, that gives us the best opportunity
to influence and open up space for civil society."
Media captionPresident Obama told the BBC he would deliver a blunt message on gay rights when he travelled to Africa
US-Africa ties
"I'll
be the first US president to not only visit Kenya and Ethiopia, but
also to address the continent as a whole, building off the African
summit that we did here which was historic and has, I think, deepened
the kinds of already strong relationships that we have across the
continent."
Giving the young opportunities
"A
while back, when we started looking at strategies to reach out to the
Muslim world, to reach out to developed countries, a common theme
emerged, which was people are not interested in just being...
patronised. And being given aid. They're interested in building
capacity."
On China
"We
welcome Chinese aid into Africa. I think we think that's a good thing.
We don't want to discourage it. As I've said before, what I also want to
make sure though is that trade is benefiting the ordinary Kenyan and
the ordinary Ethiopian and the ordinary Guinean and not just a few
elites."
