By Duncan Miriri and Giles Elgood
NAIROBI (Reuters) - Kenyan President Mwai Kibaki andopposition leader Raila Odinga signed a power-sharing agreementon Thursday intended to end a post-election crisis that left1,000 people dead.
Crowds of onlookers clapped as the two rivals inked a dealat a televised ceremony to set up a coalition governmentfollowing negotiations mediated by former U.N. chief KofiAnnan.
The two leaders had come under intense pressure tocompromise over Kibaki's disputed re-election in a December 27vote, which forced 300,000 people to flee their homes andseverely damaged Kenya's reputation as a stable economicregional hub.
The agreement involves the creation of a prime minister'spost for Odinga and posts in the new cabinet will reflect therival parties' strength in parliament.
Portfolios would be balanced along the same lines, Annansaid.
"Compromise was necessary for the survival of thiscountry," Annan said after the signing.
"I commend all those whose efforts have made this possible... they kept the future of Kenya always in their sights andreached a common position for the good of the nation."
African Union chairman Jakaya Kikwete, who threw his weightbehind talks this week, also praised the parties.
"I salute the people of Kenya on this historic occasion,"said Kikwete, who is also president of neighbouring Tanzania.
Thursday's talks brought Odinga and Kibaki to the sametable for the first time in a month, after discussions betweentheir parties hit a deadlock earlier in the week.
The opposition had threatened to hold mass street protestson Thursday, but called them off after meeting Annan, a formerU.N. Secretary-General, on Wednesday.
The crisis exploded after Kibaki was sworn in on December30 and Odinga claimed the election was rigged, a charge thepresident denied.
(Additional reporting by Wangui Kanina and Bryson Hull;Writing by Giles Elgood)
(For in depth coverage on Reuters Africa Web site:http://africa.reuters.com/elections/kenya/ )
