Kenya's government said today it agreed in principle to creating a prime minister's post demanded by the opposition.
Local and international pressure has grown for a deal to end the standoff over President Mwai Kibaki's disputed re-election on December 27th. The opposition has threatened to resume street protests next week if its demands are not met.
Though the east African nation has been relatively calm for the last two weeks, the protest threat stoked fears of a resumption of the post-poll violence that killed at least 1,000 people and forced more than 300,000 out of their homes.
The unrest has damaged Kenya's reputation as a trade and tourism hub and one of Africa's most stable nations, usually the host of peace talks rather than the subject of them.
The African Union's new chairman, Jean Ping, flew into Kenya today to add his diplomatic weight to the crisis talks led by the former UN secretary general, Kofi Annan.
"I'm beginning to see light at the end of the tunnel," Mr Annan said in a statement after talks today. Both teams were to meet with their leaders on "a joint proposal that had been largely agreed on the governance structure" before returning tomorrow, the statement said.
Government negotiator Mutula Kilonzo earlier said the creation of a prime minister's post was the focus. "That is more or less agreed on. What we are discussing now is the post's functions, responsibilities, nature of appointment and so on," he told Reuters. "This will be an interim measure."
Opposition leader Raila Odinga would be almost sure to take the post. He says Mr Kibaki in the past reneged on a pledge to give him such a post in exchange for support at the 2002 election. Asked if the job would have executive powers, Kilonzo said: "We will not give anybody a hollow shell."
The opposition has demanded the post, wanting it to have real power, and a 50-50 split in cabinet jobs including what it views as top-tier ministries like finance and internal security.