Recent data from the northwest Gulf of Alaska reveal a coastal current which flows westward along the Kenai Peninsula (mainly within 30 km of shore), enters Shelifof Strait, and exits to the southwest of Kodiak Island. This flow, which we call the Kenai Current, has a large seasonal variation in baroclinic transport and maximum surface speed; transport is typically about 0.3¿106 m3/s but exceeds 1.0¿106 m3/s in fall, with concurrent speed increases from 15--30 cm/s to over 100 cm/s. The coastal flow is clearly distinct from the offshore Alaskan Stream; its seasonal signal is mainly related to a cross-shelf pressure gradient, which responds to an annual hydrological cycle. Current records from Shelikof Srait substantiante the presence of an annual signal and indicate that wind forcing has maximum effect from December through February, but it does not appear to augment flow at other times.