By Giles Elgood and Daniel Wallis
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" unless a solution was 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.
Kibaki and Odinga 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 were killed and 300,000forced to flee their homes.
"REWARD VIOLENCE"
Foreign Minister Moses Wetangula, who is a member of thegovernment negotiating team, rejected Rice's criticism.
"Our international friends ... are welcome to makesuggestions to support the dialogue process, but not imposesolutions and should take care not to legitimise or rewardviolence, death and destruction," he told a news conference.
"All factors must be taken into account to avoid makingrush judgements based on incomplete information. We wish toreassure Kenyans that the government is fully committed to thedialogue process and to finding a lasting solution."
Adding his weight to efforts to forge a deal, TanzanianPresident Jakaya Kikwete arrived in Kenya in his capacity asAfrican Union chairman to talk to Kibaki, Annan and Odinga.
Mediator Annan, the former U.N. secretary-general, isfrustrated and ready to leave the country Kenya if there is noprogress soon, according to a source close to the talks.
In Brussels, the European Union aid chief Louis Michelexpressed "utmost concern" that the talks had stalled.
"The country clearly stands at the crossroads," Michelsaid.
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.
Musalia Mudavadi, a senior opposition leader, refused torule the protests out after the talks were suspended.
"That will be a subject for another day," he toldreporters.
Earlier protests descended into riots and looting that weremet with a deadly police response, and rounds of ethnickillings and revenge attacks erupted in different parts of theeast African country.
The bloodshed damaged Kenya's reputation as a prosperoustrade and tourism hub in a volatile region. Against thisbackground of violence, the government has agreed in principleto create a prime minister's seat demanded by 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.
(Additional reporting by Duncan Miriri; editing by DanielWallis and Andrew Roche)
(For in depth coverage on Reuters Africa Web site:http://africa.reuters.com/elections/kenya/ )
