The deadlock in the Kenyan crisis was broken dramatically on Thursday when president Mwai Kibaki ceded to the main demands of the opposition and signed a deal to create a coalition government and make the opposition leader prime minister.

The deal was hailed by Raila Odinga, the opposition leader, as the start of a “new chapter” for Kenya following the announcement by Kofi Annan, the mediator who earlier this week complained that talks were “going round in circles”.