Kenya is one of those countries where the Indian citizen gets a visa on arrival. The process is fairly straightforward and the following documents are required.
1) Passport with minimum 6 months validity and 2 blank pages
2) Completed visa form available at the immigration desk at the airport
3) Visa fee of USD 50 or GBP 30 or Euro 40
4) Hotel bookings (some times immigration officials are known to ask for it)
5) Return tickets are not asked for, but would be good to have an idea of your next destination and the way you want to travel (overland, air travel, etc)
The visa is valid for a single entry and up to a duration of 90 days. The visa also holds for a re-entry into Kenya from Tanzania, Uganda and Rwanda during the 90 day period.
The Indian traveler can also apply for the visa at a Kenyan embassy. The cost and the documentation remain the same. The only additional thing required are 2 passport size photographs with white background.
Note: Remember to get your yellow fever vaccination 15 days before flying into Kenya and carry the yellow fever certificate with you at all times especially if you are going to be traveling to a country that is outside the purview of yellow fever.