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"We have agreed an agenda covering both short-term issues and also long-term issues," Mr Annan said.
The deal was agreed by representatives of both President Mwai Kibaki and opposition leader Raila Odinga.
The announcement came after fresh outbreaks of fighting left at least 18 people dead in the west of the country.
Mr Annan said the rival parties had agreed a four-point framework for talks which should end the violence within the next two weeks.
The BBC's Adam Mynott in Nairobi says the deal is a good start which should have an impact on the level of violence on the ground.
But the two parties were still very, very far apart, he says, with President Kibaki saying he won December's disputed presidential election fair and square, and Mr Odinga claiming it was rigged.
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The talks are due to last a month and items on the agenda include:
* ending the violence
* humanitarian situation
* resolving the political crisis
* land and historical injustices
"We believe within seven to 15 days, we should be able to tackle the first three agenda items," Mr Annan said.
"The first is to take immediate action to stop the violence."
Mr Annan said the parties had agreed on 18 action points to end the violence, including demobilising militia gangs, refraining from provocative speeches and ending text messages which have been inciting hatred.
His announcement followed a visit by his successor, UN Secretary General Ban Ki-moon, who called on all sides in Kenya to stop the violence.
Leattle Pablo
Kaduna, Nigeria
jhaber
New York, United States
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