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Published: February 6, 2008
NAIROBI, Kenya - The Peace Corps said Tuesday that it has suspended operations in Kenya after weeks of postelection violence, another blow to confidence as business leaders voiced concerns over the turmoil's effect on the economy.
Unrest has devastated the nation's once-impressive economy, decimating its vital tourism industry and prompting foreign companies to consider pulling out, business leaders said.
The Peace Corps said it was withdrawing its remaining 58 volunteers. After clashes first erupted, 86 volunteers were sent home in January.
There were fears that other organizations - aid groups and businesses alike - would also leave unless there is an end to the violence that has engulfed Kenya since a Dec. 27 election that local and foreign observers say was rigged.
"There are questions already being asked, why are you there? What gives you the advantage to stay in Kenya?" said Steven Smith, managing director of Kenya operations for U.S. battery maker Eveready.
More than 1,000 people have been killed and 300,000 forced from their homes in violence that has degenerated into ethnic clashes.
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