By Duncan Miriri and Giles Elgood
NAIROBI (Reuters) - U.S. Secretary of State CondoleezzaRice criticised Kenyan leaders on Tuesday for failing to endtheir political stand-off and said Washington would take"necessary steps" if a solution was not reached.
Government and opposition negotiators failed to reach abreakthrough on a power-sharing deal, prompting mediator KofiAnnan to suspend the talks while he consulted President MwaiKibaki and opposition leader Raila Odinga.
"The talks have not broken down," Annan told reporters."But I am taking steps to make sure we accelerate the processand give peace to the people as soon as possible."
Rice, who is on a trip to China, said that while there hadbeen some progress, "I am disappointed by the failure ofleadership necessary to resolve all the remaining issues."
She added: "I want to emphasise that the future of ourrelationship with both sides and their legitimacy hinges ontheir cooperation to achieve this political solution.
"In that regard, we are exploring a wide range of possibleactions. We will draw our own conclusions about who isresponsible for lack of progress and take necessary steps."
She did not elaborate.
Rice, who visited Kenya earlier this month to urgeprogress, said the United States would also "exerciseleadership" to press for a political solution through theUnited Nations, the African Union and the European Union.
Both Kenyan leaders have come under international anddomestic pressure to compromise over Kibaki's disputedre-election in a December 27 vote, an event that triggeredethnic violence in which 1,000 people have been killed and300,000 forced to flee their homes.
"SOME AGREEMENT"
Tanzanian President Jakaya Kikwete was due to arrive onWednesday in his capacity as African Union chairman to talkwith Odinga, Annan and Kibaki.
Mediator Annan, the former U.N. secretary-general, is readyto leave Kenya if there is no progress soon, according to asource close to the talks.
The opposition has said it will stage nationwide protestsbeginning on Thursday if there is no deal. Police had nocomment on whether they would permit the demonstrations.
A top official of Kibaki's party said the protest call wasnot in the interests of the Kenyan people.
"When you say mass action the message that people hear iswar. There has been enough suffering," said Danson Mungatana,Secretary General of the Party of National Unity.
Earlier protests descended into riots and looting that weremet with a deadly police response, while simultaneous rounds ofethnic killings and revenge attacks took place in differentparts of the east African country.
The bloodshed damaged Kenya's reputation as a prosperoustrade and tourism hub and a haven of stability in a volatileregion.
Against this background of violence, the government hasagreed in principle to create a prime minister's seat demandedby the opposition.
But the parties are split on the premier's powers, thesharing of ministries and the possibility of a new election ifthe coalition collapses.
Police on Monday arrested at least 200 youths said to beundergoing military training at a farm owned by a formerlegislator, near the Mt. Elgon area, local media reported. Apolice spokesman gave no immediate comment.
(For in depth coverage on Reuters Africa Web site:http://africa.reuters.com/elections/kenya/ )
(Editing by Daniel Wallis)