African Union chief John Kufuor shuttled between Kenya's president and opposition leader on Wednesday to try to break a political impasse behind post-election turmoil that has killed 500 people.
Kufuor, Ghana's president, met President Mwai Kibaki first at State House before holding talks with Raila Odinga at a central hotel. He then returned to Kibaki and was due to speak to Odinga again on Thursday.
Kibaki's office said the president and Kufuor reiterated that dialogue was "the only way forward towards a sustainable solution to the current political situation."
An opposition spokesman said Odinga discussed forming a transitional government, a vote recount and a new poll as possible options to end a crisis that has dented Kenya's reputation for stability in volatile east Africa.
"(Kufuor) will leave very soon, after having created a framework in which these negotiations can take place," he said.
Odinga says Kibaki supporters cheated him out of the December 27 vote by rigging. Washington and London have said the vote counting was flawed.
Previously regarded as a gentlemanly leader with a passion for golf, Kibaki has revealed a steely side.
He announced the core of a new cabinet on Tuesday that ignored Odinga's party and triggered a night of riots in the western opposition stronghold, Kisumu.
Washington said the U.S. envoy in Kenya, Jendayi Frazer, spoke to Kibaki about the move.
"The perception was he was trying to put in place a political fait accompli." U.S. State Department spokesman Sean McCormack told reporters. "We expressed our displeasure, we were quite disappointed by the action."
Kibaki told Frazer the step was intended only to keep the government running while there was a negotiated political settlement to the crisis, McCormack said.
