This article argues that trade rather than confrontation was the predominant theme of the early years of interaction between the Kikuyu and the British. It suggests that the Southern Kikuyu in particular enjoyed an important initial period of co-existence with the British, the economic basis of which was a rapid expansion in the 1890s of an already existing trade in agricultural produce with caravans moving along the road to Uganda. This development was, however, not universally welcome among the Southern Kikuyu, and there was a clash of interest between those concerned with an increased production of agricultural surplus, and those whose economic interests were centred on livestock. The death of Waiyaki removed from the scene the most influential trading elder and facilitated, from the areas previously under his influence, hostile opposition to the trading activities now centred upon the permanent fort of the Imperial British East Africa Company. The steady increase of food production encouraged the emergence of a number of Southern Kikuyu traders; this was particularly true for Kinanjui, who had established himself at a time when the military resources of the I.B.E.A. Co. were negligible and poorly organized. It is argued that Kinanjui's status can no longer be regarded as merely the result of assistance from the British. It was significant that the British did not at any time prior to 1900 deploy at Fort Smith a permanent garrison of troops. There existed instead a balance of military resources which made possible an important local arena of political activity between the Southern Kikuyu and the British. The Northern Kikuyu, by contrast, despite their longer-standing trading contacts with the coast, were denied similar opportunities by virtue of more positive policies of control directed initially towards revenue collection.