NAIROBI, June 25 (Reuters) - Kenya's AIDS rate has dropped to 5.9 percent and should fall further in coming years, but hundreds a day still die from it, authorities said on Monday.

"Although we have made impressive progress in fighting AIDS, we still face a big challenge ahead of us," minister of state for special programmes John Munyes told a news conference.

According to latest statistics from the state-run National Aids Control Council (NACC), Kenya's AIDS rate fell from 6.1 percent in 2004 to 5.9 percent of the east African nation's 35 million people the following year.

Kenya aims to reduce AIDS to 5.5 percent by 2010.

Officials cite better prevention, more widespread use of anti-retroviral drugs (ARVs), greater use of condoms and more responsible sex habits for the fall in infection rates.

"Of notable significance is the decline in new infections from 85,000 in 2004 to 60,000 in 2005 as well as the drop in HIV prevalence from 6.1 percent to 5.9 percent in the same period," NACC chairwoman Miriam Were added at the news conference.

Munyes, whose ministry works on health projects, said 315 Kenyans were dying a day from AIDS and AIDS-related illnesses.

Kenya was home to about 1.2 million AIDS orphans, he added.

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