M. Continuo

Annan says Kenya talks reach agreement

By Duncan Miriri

NAIROBI (Reuters) - Mediator Kofi Annan said Kenya'sgovernment and opposition had reached agreement on apower-sharing deal at talks on Thursday to end the country'sdeadly post-election crisis.

"We have come to an understanding on the coalitionagreement," Annan told reporters after meeting President MwaiKibaki, opposition leader Raila Odinga and African Union headJakaya Kikwete.

Annan said the two sides would meet again at 1 p.m. Britishtime, when they would be ready to sign a document and he wouldbe able to give further details.

Thursday's talks brought Odinga and Kibaki to the sametable for the first time in a month, after discussions betweennegotiators for the two men hit a deadlock earlier in the week.

"We've had a very constructive and fruitful day and we'vecome to an understanding on the coalition agreement ... I'm notin a position to tell you anything further, all that I can sayis we do have an agreement," said Annan, who has been leadingmediation efforts for the past month.

Odinga and Kibaki have come under intense pressure tocompromise over Kibaki's disputed re-election in a December 27vote, which sparked ethnic violence that killed 1,000 peopleand displaced 300,000 more.

Kemya's trade unions and employers published an open letterin a newspaper on Thursday urging a swift settlement, whileNairobi-based diplomatic missions from Europe, Japan and Canadaissued a statement calling for compromise.

The opposition had threatened to hold mass street protestson Thursday, but called them off after meeting Annan, a formerU.N. Secretary-General, on Wednesday.

Kibaki has agreed to create a prime minister post, asdemanded by the opposition, but it was unclear what powers apremier would have and how many cabinet jobs Odinga's sidewould get.

The crisis that exploded after Kibaki was sworn in onDecember 30, amid Odinga's claims the election was rigged,seriously hurt Kenya's reputation as a stable, prosperousnation in a turbulent corner of Africa.

(Additional reporting by Wangui Kanina and Bryson Hull;Writing by Giles Elgood; editing by Bryson Hull)

(For in depth coverage on Reuters Africa Web site:http://africa.reuters.com/elections/kenya/ )

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