President Kibaki named rival political leader Raila Odinga the Prime Minister in a 40-member grand coalition Cabinet on Sunday. The announcement came after weeks of tense negotiations between the two leaders. Kibaki, accompanied by Odinga and Vice President Kalonzo Musyoka, announced the new Cabinet in a live address to the nation from State House, Nairobi.

President Kibaki said that the new cabinet will move fast to heal the nation. "The new Cabinet will prioritize resettlement of displaced persons so that they can resume their normal lives and play their part in nation building," he said. The Prime Minister – a new position in Kenya's government – will have power to coordinate and supervise other ministries.

The naming of the new Cabinet comes against a backdrop of sustained pressure from the International community, the Church, civil society, politicians and the Kenyan public on the two leaders to reach a deal. Kenya was thrown into a political turmoil after the December 27 presidential election failed to produce a clear winner. The violence that followed left more than 1,000 people dead, over 350,000 displaced and property worth billions of Kenya shillings destroyed.