This paper compares earlier and current approaches to rural-urban development in Kenya since its origins in the development Plan of 1970-74. Whereas, earlier, rural-urban development was treated as a self-contained policy area, it is now regarded as an integral component of national development policy. Primary attention is given not so much to the form of the urban system, but to the functioning of it. While the allocation of investments in physical infrastructure remains a key instrument of policy, others include the promotion of small towns serving rural areas - known as 'Rural Trade and Production Centres', the improvement of delivery systems for public services, and incentives for business, particularly small scale enterprises and informal sector activities.