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A supporter of Kenya's opposition leader, Raila Odinga, celebrates on the streets of Kisumu on Thursday after hearing news that Odinga and President Mwai Kibaki signed an agreement to form a coalition government.
A supporter of Kenya’s opposition leader, Raila Odinga, celebrates on the streets of Kisumu on Thursday after hearing news that Odinga and President Mwai Kibaki signed an agreement to form a coalition government.
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NAIROBI, Kenya — Kenya’s presidential rivals agreed Thursday to share power in a coalition government aimed at ending postelection chaos that has killed 1,000 people and brought this once-promising East African nation to the brink of collapse.

Under the terms of a deal signed by President Mwai Kibaki and opposition leader Raila Odinga, their parties will divide Cabinet positions 50-50 and amend the constitution to create a prime minister position for Odinga, who will share power with the president.

The agreement marks a significant step toward resolving Kenya’s political crisis, easing citizens’ fears that failed peace talks would trigger more violence.

The accord brought praise from the U.S. and other Western governments, which had come to count on Kenya as an economic partner and source of stability in East Africa.

But many Kenyans also said they were taking a wait-and-see attitude to determine whether the rivals are genuinely committed and willing to work together. They noted that their nation still faces sizable challenges, including a shattered economy, rising ethnic tensions and 350,000 people displaced by violence since the disputed Dec. 27 elections.

“They are solving their political problems, but not our problems yet,” said Alfonse Mutuku, 24, who lives in a displacement camp near Limuru, north of Nairobi.

Former U.N. Secretary-General Kofi Annan, who is leading the mediation effort, said the deal was the only way to break Kenya’s stalemate.

“Compromise was necessary for the survival of this country,” he said. But he cautioned that work toward resolving the nation’s social and humanitarian issues must continue. “The journey is far from over. In fact, it is only beginning.”

Underscoring tensions that still grip the country, police fired tear gas at Odinga supporters celebrating on the streets of downtown Nairobi shortly after the signing ceremony.

The compromise marks a turnaround from just three days ago, when Annan disbanded bickering negotiating teams and warned that his effort had reached an impasse. With help from visiting Tanzania President Jakaya Kikwete, Annan began direct discussions with Kibaki and Odinga on Wednesday.

Key details of the coalition government have yet to be determined, including how exactly the president and prime minister will share powers, how Cabinet posts will be divided, how disputes will be resolved and what happens if the coalition falls apart. Parliament is due to convene March 6 to begin revising the constitution.

In the final hours of negotiation, Kibaki made significant concessions to the opposition, agreeing to a constitutional amendment that just one day earlier he had ruled out. His change of heart came amid intense pressure from the United States and others in the international community, who voiced warnings about possible sanctions and isolation for those perceived to be blocking a deal.

In addition, neighboring countries, including Uganda, Rwanda and Tanzania, pushed Kibaki to settle because their economies rely heavily on Kenyan ports and have suffered during the unrest.

After signing the agreement, Kibaki called on Kenyans to forget the ethnic clashes of the past two months and live together in peace.

“Kenya has room for all of us,” he said.

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