This has already been addressed by Phil at The Right Side of Life. There supposedly was a retraction- I think someone linked it but it was sketchy. Phil was supposed to hear back from the reporter who also reported on the birth announcement in the Advertiser. Hoover (reporter) suddenly was going on vacation. If you can’t find the background at Phil’s site, I’ll try to update.
This just in (h/t SentinelRadio): An archived page from the Nairobi, Kenyan Sunday Standard claims in 2004 that Mr. Obama was Kenyan-born (click image for larger picture): …and could this article be confirming the village from which Mr. Obama could have been born?
There you have it, Phil would have remembered this had he blogged on it before.