Rice demands action as Kenya talks stall

By Giles Elgood and Daniel Wallis

NAIROBI (Reuters) - U.S. Secretary of State Condoleezza Rice criticized Kenyan leaders on Tuesday for failing to end their political stand-off and said Washington would take "necessary steps" unless a solution was reached.

Government and opposition negotiators failed to reach a breakthrough on a power-sharing deal, prompting mediator Kofi Annan to suspend the talks while he consulted President Mwai Kibaki and opposition leader Raila Odinga.

"The talks have not broken down," Annan told reporters. "But I am taking steps to make sure we accelerate the process and give peace to the people as soon as possible."

Rice, who is on a trip to China, said that while there had been some progress, "I am disappointed by the failure of leadership necessary to resolve all the remaining issues."

She added: "I want to emphasize that the future of our relationship with both sides and their legitimacy hinges on their cooperation to achieve this political solution.

"In that regard, we are exploring a wide range of possible actions. We will draw our own conclusions about who is responsible for lack of progress and take necessary steps."

She did not elaborate.

Rice, who visited Kenya earlier this month to urge progress, said the United States would also "exercise leadership" to press for a political solution through the United Nations, the African Union and the European Union.