Kenya's new President has offered the job of Prime Minister to his bitter rival in order to end the political unrest that has left more than 1,000 Kenyans dead in inter-tribal battles.

President Kibaki and Raila Odinga, the opposirtion leader, signed the deal on live television today, watched by Kofi Annan, the former UN Secretary-General, who has led efforts to mediate between the two men.

As aides leapt to clear the table away on which the deal was signed, the piece of furniture collapsed. Kenyans who have been keenly watching the progress of weeks of tortuous and bitter negotiations between the two political leaders will be hoping that the deal itself does not prove equally fragile.

“For the past two months, Kenyans have known nothing but sadness,” Mr Odinga said after signing the deal. He referred to his rival courteously as “my countryman, President Mwai Kibaki.”

Mr Kibaki added: “This process has reminded us that as a nation there are more issues that unite than that divide us.”

Under the deal, the role of Prime Minister will be occupied by Mr Odinga as the leader of the largest party in the Kenyan National Assembly. He will have a say in the appointment of ministers, and cannot be removed except by a confidence vote by Parliament. It is understood that the terms of the deal answer most of the demands of the opposition.

There had been signs yesterday that the two political rivals might be nearing agreement. Mr Odinga’s supporters called off planned protests, and Mr Kibaki offered his first public commitment to creating the prime ministerial post that his rivals have been demanding.

It is not the first time that Mr Kibaki has offered Mr Odinga the job of Prime Minister, but the last time he did so, five years ago, he went back on his word. Mr Annan said that there will be international monitoring this time to make sure that the terms of the deal are kept.

Mr Odinga appeared stern-faced throughout as he sat to sign his name to the document. He nonetheless is the one who appears to have won the greater political concessions out of the wrangling. Mr Kibaki appeared more relaxed and jovial at the signing ceremony. Mr Annan, who has seemed stressed in the past couple of weeks, looked more relaxed than before.

Observers say that the fact that a deal has been done at all is largely due to the skilled negotiation of Mr Annan, who kept hopes alive when in reality both sides were intransigent and it was a struggle to keep going.

He made a series of small announcements that gave the impression that the talks had some momentum. He finally became so exasperated by the obstructive attitude of the two negotiating teams that he dismissed them and demanded face to face meetings with Mr Kibaki and Mr Odinga themselves, where he appears to have knocked heads together.

It is understood that there was agreement at the start of the week about the creation of a prime ministerial post – a position previously unknown in Kenya, where the President wields executive power. The final hours of wrangling appear to have been about how much power the post should have.

It was left to Mr Annan to announce the breakthrough. “We have come to an understanding on the coalition agreement,” he told reporters. “I am pleased to be able to tell you and the citizens of Kenya that the two leaders this afternoon completed work on ... how to overcome the political crisis. I commend all those whose efforts have made this possible."

Mr Annan urged Parliament to convene soon to enact the necessary laws to flesh out the deal. First reactions from Kenyans were cool. Robert Mwaniki, 26, a salesman for a cable TV company in Nairobi, said that a deal between the politicians was only the start. "Once they sign this agreement, everything will be OK for them, but not for us," he said.

"Before we get that confidence back of living together as different tribes, it may take time. We have no respect for each other any more. All you care about is you."

More than 1,000 people have died, hundreds of thousands have been made homeless and Kenya's economy has been gravely damaged in the violence that erupted after the disputed presidential election in December.

The killing began amid a government purge of opposition street demonstrations, as both men claimed to have won the election, held on December 27. Election observers have said that the results were rigged, making it unclear who actually won.

Much of the bloodshed had an ethnic tinge, pitting supporters of Mr Kibaki’s Kikuyu tribe against Mr Odinga’s Luo. The killing has largely subsided, but the country remains on edge. The conflict has tarnished the reputation of the once-stable and prosperous East African country.

Times Recommends

• African migrants desperate for a better life
• Karzai, the Anglophile who alienated the West
• They killed my family, but I rise again