PROGRESS AT KENYA'S PEACE TALKS !

Kofi Annan has been trying to broker a deal between the rivals. Kenya's ruling party and opposition could be days away from a final political settlement to end post-election bloodshed, officials say. Ex-UN Secretary General Kofi Annan told reporters in Nairobi a deal could be reached next week but that earlier reports of a deal had been premature.

The BBC's Karen Allen in Nairobi says it is a significant development which could pave the way to power sharing. Some 1,000 people have died in the clashes since December's elections. Mr Annan said: "We are all agreed that a political settlement is needed, that a political settlement is necessary and we are working out the details of such a settlement."

President Mwai Kibaki's party said there had been an "agreement in principle", while the opposition spoke of a "positive development". The new mood of consensus represents a significant development and follows weeks of intransigence from both sides, says our correspondent.

Speaking at a prayer service in Nairobi on Friday, Mr Kibaki said he was "encouraged by the commendable progress" in the peace talks. Mr Kibaki was declared the winner of the presidential election, which observers said was deeply flawed.

The opposition Orange Democratic Movement, led by Raila Odinga, had said it was cheated of victory and called for a re-run of the poll. But Mr Kibaki's Party of National Unity had insisted the opposition should challenge the disputed result through the courts. More than 300,000 people were displaced in the post-election violence, as both sides traded accusations of ethnic cleansing.
BBC NEWS REPORT.