Johannesburg — BUSINESSMAN Cyril Ramaphosa has withdrawn from peace talks meant to help find a solution to the crisis in Kenya after Kenya's government expressed disquiet about his alleged business ties to the country's opposition leader.

Ramaphosa joined the talks on Friday, invited by former United Nations secretary-general Kof i Annan, the official African Union-appointed facilitator.

His withdrawal from the peace process was seen as a blow to reaching a lasting agreement in what was once east Africa's most stable country, seeing that he has vast experience as a negotiator in conflict situations worldwide.

However, talks continued in Nairobi, where negotiating teams were briefed on the humanitarian situation by the head of the Kenya Red Cross, Abbas Gullet.

Concern in the government camp was that the former African National Congress secretary- general had business links with opposition leader Raila Odinga, and would not be impartial.

Ramaphosa, expected back in SA last night, denied Odinga was his business partner, but acknowledged he had not won the trust of both sides.

"Anybody who seeks the role of mediator can only do so effectively if they enjoy the trust and confidence of all parties involved in the mediation process. I thought I should withdraw and go back to SA so I do not become a stumbling block myself," he said.

Annan expected Ramaphosa to "backstop" him in the event the former UN chief needed to move on to other tasks, said Wafula Okumu, head of the Institute for Security Studies's African security analysis programme.

He said Ramaphosa's withdrawal from the negotiations was not likely to affect SA's diplomacy since he was there in his individual capacity.

About 1000 people have died in Kenya since violence flared up in the aftermath of last year's disputed December 27 presidential election. About 300000 have been displaced in Kenya's worst crisis in 25 years, which has tur-ned into an ethnic conflagration.

What appeared to be a breakthrough was achieved last Friday when Annan announced rival parties had agreed to a four-point framework for talks which should end the violence within the next two weeks. However, this had not stemmed the violence.

The focal point of most of the violence, the Rift Valley in western Kenya, remained tense after 74 people died at the weekend in violence pitting Kisiis against Kalenjins. About 20 Kalenjins died in clashes with police.

Okumu described Ramaphosa as a man who seemed to be "cut out for the job". The former trade unionist played an important role in SA's transition, and was involved in the international commission on intervention and state sovereignty, whose "humanitarian intervention" principle was adopted by the UN in 2005.

Okumu said the withdrawal of Ramaphosa would lend credibility to suspicions that the Kenyan government did not want international mediators to steer towards a solution.

But Ramaphosa was not the only mediator the government brushed aside. Archbishop Desmond Tutu, Ghanaian President John Kufuor, and US Assistant Secretary of State for African Affairs Jendayi Frazer were among those who sought to help.

Okumu said the Kenyan government favoured solving the crisis through court action or local mediators whom they could influence.