“When Barack Obama Jr. was born on Aug. 4,1961, in Honolulu, Kenya was a British colony, still part of the United Kingdom’s dwindling empire. As a Kenyan native, Barack Obama Sr. was a British subject whose citizenship status was governed by The British Nationality Act of 1948. That same act governed the status of Obama Sr.‘s children.http://fightthesmears.com/articles/5/birthcertificate.html
Furthermore: Hawaii's Territorial Law, Chapter 57 - "VITAL STATISTICS, I", shown beginning pg 23 of 29, (the law in effect in 1961) allowed baby's born anywhere in the world to be eligible to apply for a Hawaii birth certificate.