In December 1991, only days after the repeal of Section 2A of the Kenyan constitution, which restored the multiparty system, Mwai Kibaki left KANU and founded the Democratic Party (DP), which later became the National Alliance Party of Kenya (NAK). He finished third in the presidential elections of 1992, and second (with 31% of votes) in those of 1997.

In preparation of the 2002 elections, NAK allied itself with the Liberal Democratic Party (LDP) to form the National Rainbow Coalition (NARC), which went on to win the elections.