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Misinformation and fake news pose increasing threats to democracies worldwide, with developing countries being no exception. This challenge is particularly pronounced in regions where digital media is rapidly transforming the landscape of public discourse. In the context of Kenya, a nation characterized by widespread social media use and a recent history of misinformation campaigns, this study addresses a critical gap in the existing literature, which predominantly focuses on Western democracies and offers primarily qualitative narratives from the developing world. We present novel survey experimental evidence on the susceptibility of Kenyan citizens to fake news. Utilizing a real instance of fake news verified by AfricaCheck, an independent fact-checking organization, we manipulated the perceived political beneficiary of the news and the source of its fact-checking. Post-experiment, respondents were debriefed about the falsehood of the fake news, providing them with insights into the nature of misinformation and inviting them to engage with recent examples of fake news and fact-checking efforts in Kenya. Our findings reveal that, in the absence of corrective information, such news is widely believed by respondents, with little distinction between supporters of incumbents or the opposition. Importantly, we demonstrate the efficacy of fact-checking in reducing belief in fake news, with independent NGOs leading in effectiveness, followed by international news media, social media companies, and Kenyan domestic media. Notably, even when respondents recognized the inaccuracy of the news or it was corrected, many reported a likelihood to share the misinformation. We further delve into the characteristics of individuals more prone to believe and less likely to be swayed by fact-checking, even when informed about recent misinformation incidents and associated counter-efforts. By shedding light on these dynamics in Kenya, our research significantly contributes to the understanding of fake news in developing countries. It offers valuable insights for the design of more effective fact-checking strategies, not only in Kenya but also in similar contexts globally.