Kenya govt condemns opposition "sabotage" plan

NAIROBI (Reuters) - The Kenyan government condemned as "illegal sabotage" on Monday a plan by the opposition to widen its protests against President Mwai Kibaki's re-election to a boycott of companies linked to his allies.

After a bloody weekend that added to the death toll of around 650 since the December 27 vote, the Orange Democratic Movement (ODM) vowed to continue street rallies from Thursday and also called for economic protests.

"Sabotage of companies (is) illegal and an insult to Kenyans," the government said in a statement.

"Politicians are warned that they will be held personally responsible and accountable for any destruction of property emanating from their incitement."

In the latest violence, three people were hacked to death in ethnic fighting in a Nairobi slum on Sunday. Some 250,000 people have also been displaced in a nation more used to receiving refugees from war-torn neighbors like Sudan and Somalia.

The crisis has also damaged one of Africa's most promising economies, cut off supplies to neighbors, and tainted Kibaki's reputation as the man who democratized Kenya after the 24-year rule of President Daniel arap Moi.

The opposition, led by former Kibaki minister and one-time political prisoner Raila Odinga, hopes increased pressure on the president will undermine his hold on power after a vote that most foreign and local observers agree was flawed.

It has urged supporters to shun companies owned by Kibaki allies, including Equity Bank, Brookside Diaries and bus companies CityHoppa and Kenya Bus. Boycotts would hurt the poor and inflame ethnic divisions, the government said.

The crisis has damaged one of Africa's most promising economies, cut
off supplies to neighbors, and tainted Kibaki's reputation as the man
who democratized Kenya after the 24-year rule of President Daniel arap
Moi.

In jittery Kenyan markets, the shilling currency hit a 10-month low against the U.S. dollar on Monday.

ECONOMIC PRESSURE

The opposition, led by former Kibaki minister and one-time political
prisoner Raila Odinga, calculates increased pressure on the president
will undermine his hold on power after a vote that most foreign and
local observers agree was flawed.

It has urged supporters to shun companies owned by Kibaki allies,
including Equity Bank, Brookside Dairies and bus companies CityHoppa
and Kenya Bus.

The boycott call may be more symbolic than real, however, given that
many of Kenya's poor use Equity because of its accessibility and low
charges, while commuters in long queues may not want to wait even
longer by shunning certain buses.

Odinga was due later on Monday in the western towns of Kakamega and
Kisumu, both opposition strongholds, for funeral services for
supporters killed in protests against Kibaki.

Residents in Kisumu promised a rapturous welcome for Odinga, whom
they call the "People's President", on his first visit to the
unofficial opposition capital since the vote.

The city has been devastated by riots and protests.

"This will be both a funeral service for those shot by the police as
well as a homecoming for our President Raila Odinga," said hotel worker
Wycliffe Orwa, 26.

In the latest international mediation attempt, former U.N.
secretary-general Kofi Annan was due to fly into Kenya to start talks
with both sides on Tuesday. Diplomats hope he can bring Kibaki and
Odinga into some sort of power-sharing arrangement, possibly before a
fresh vote in the east African nation.

Kenyans, however, are skeptical of such a solution.

"It seems every time we vote, we bring a bloodbath upon ourselves,"
said a Nairobi housewife, Joy, who asked for her surname not to be
used. "Why would we want another election?"