By Wangui Kanina
The move came as pressure mounted on Kenya's feuding parties to resolve a crisis triggered by the December 27 polls that has killed more than 1,000 people and uprooted some 300,000 others.
The violence has shattered Kenya's image of stability, horrifying locals, neighbouring states and world powers alike.
Western nations have used such sanctions in the past against African corruption suspects, including high-level politicians. Those targeted tend to ignore the sanctions, viewing them as a form of neo-colonialism.
Canada has threatened to ban politicians guilty of stoking tribal violence, and diplomats say Britain may do likewise.
Kenya has taken its own steps against a former envoy to Nairobi, Edward Clay, declaring him persona non grata after his tenure ended and he bought property in Kenya. Clay is vocal critic of corruption in Kenya.
Former U.N. Secretary-General Kofi Annan is leading international mediation efforts at a hotel in Nairobi where officials from both parties met on Thursday for more talks, and a string of outside diplomats came through.
"There is no room for parties who will not give a chance to Kofi Annan," Michel said, adding that an earlier EU threat of sanctions should not be discussed while talks were ongoing.
Having agreed on principles to stem violence and help refugees, negotiators at the Annan talks are now stuck on the original bone of contention -- who won the December vote.
Odinga told reporters his stand that Kibaki should step down had changed: "We are not static on that point. We are willing to move so that an acceptable solution can be found."
Foreign ministers of the regional bloc IGAD were also in town to meet Annan and among themselves, while leaders of another regional bloc, the East African Community, indefinitely postponed a visit due to start on Friday.
They say Kibaki is seeking to legitimise his position "through the back door" by playing host. Kibaki last week was recognised as a head of state at an African Union summit, a meeting which the opposition tried but failed to get into.
Beyond the ballot, the crisis has laid bare divisions over land, wealth and power that date from colonial rule and have since been stoked by politicians, particularly at election time.
(For special coverage from Reuters on Kenya's crisis see: http ://africa.reuters.com/elections/kenya/)
