The ruling PNU is locked in a stalemate with the ODM over prime cabinet positions which the National Accord and Reconciliation Act they signed in late February says they share equally.

``Our party is deeply concerned that the stalemate over the formation of the grand coalition government is increasing uncertainty and anxiety in the country, `` ODM leader Raila Odinga complained in a letter to Kibaki.

``It is also escalating the mistrust that we, as leaders, were expected to eliminate by the establishment of the grand coalition,`` it went on.

Violent protests broke out this week in Kibera slums and the western Kenya town of Kisumu which are ODM strongholds after Kibaki reneged on an earlier pledge last week that he would name a new cabinet last Sunday.

The new drawback comes in what is seen as power struggles in the PNU as hardliners jostle for powerful positions which have seen Kibaki handing ODM fringe ministries to which they have rejected.

The ODM had expected to be handed the ministries of; Local government, Energy, Transport, Cabinet Affairs and Foreign Affairs.

Odinga accused PNU leaders of attempting to short-change them in sharing of high profile ministries by throwing obstacles on the road.

But at a news conference outside his office, Kibaki said: ``I remain ready and willing to conclude the formation of the coalition government at the earliest possible opportunity.``

Western and African diplomats have been involved in shuttle diplomacy talking to both sides with the American ambassador, Michael Rannenberger optimistically saying, `` I came absolutely convinced that they are committed [in sharing power].``

EU and Canada have withheld aid funds of more than $500 million they had pledged to the new coalition to help the country to get on its feet.

The opposition accuses Kibaki of being controlled by power brokers in the government and corrupt networks in the business community who are fighting to keep business as usual at the expense of the peace agreement.

If the ODM get the key ministries they have proposed, the fear is that, ``then this corruption networks would collapse, `` James Orengo, ODM legal Secretary said in a televised debate.

The ODM has threatened to pull out of cabinet talks and call for fresh elections and a PNU meeting chaired by Vice-president Kalonzo Musyoka also hinted at the possibility of a fresh presidential poll.

Religious and civic organizations have also added their voice for fresh polls if the two principals cannot agree on a power-sharing agreement.

Tens of thousands of internally displaced are still living in camps in deplorable conditions as the talks show no signs of a breakthrough soon.

``Should the accord not be implemented, the United States will form its own judgments regarding responsibility for lack of implementation of the act, `` US Secretary of State Condoleeza Rice said in a thinly veiled threat to Kibaki's government which has been seen as stalling the talks.

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