The results presented in this chapter are based on secondary data from relevant institutions, three mini surveys and simulation models. HIV prevalence in Kenya increased from 5.3 percent in 1990 to 13.5 percent in 2002 with the number of children under 5 years living with HIV growing from 32,000 in 1990 to 106,000 in 2000. The projections based on the trend data suggest that HIV prevalence will reach a peak to about 14 percent by 2005 and stabilize at that level. The analysis shows that prevention programs implemented so far have not been very effective in changing risky behaviours. The pilot program on reduction of mother to child transmission needs to be evaluated with a view to scaling it up. Only about 5 percent of seropositive people have access to antiretroviral drugs due to very high cost. Child welfare indicators are adversely affected by the epidemic, with an increase of child mortality and orphanhood. The HIV/AIDS affected households were found to adopt unsustainable coping strategies including sale of assets. There are limited funds and programs targeting the orphans and the vulnerable children. Data from the ministries suggest a slight decline in quantity of education services at the primary level and a substantial decline of quality at the secondary level and that health services are being crowded out by HIV/AIDS patients.