Former United Nations secretary general Kofi Annan, who brokered the peace deal, presided over the ceremony.
Annan said the deal provides for a new position of prime minister and two deputy prime ministers and the division of cabinet responsibilities would reflect the strength of the political parties in the National Assembly.
The agreement gives the prime minister "authority to co-ordinate and supervise the execution of government functions". Annan urged all Kenyans to support the agreement.
"The job of national reconciliation and national reconstruction is not for the leaders alone. It must be carried out in every neighbourhood, village, hamlet of the nation", he said, adding that the international community is standing by their side, ready to help.
Kibaki won the presidential vote, but his party lost seats in the legislative election held the same day. Odinga's Orange Democratic Movement won 95, while Kibaki's Party of National Unity took
43 seats.
The rioting and looting that followed pitted rival tribal supporters of each leader against one another, with senseless killings that brought international condemnation. In one incident, a church was set on fire killing men, women and children who had sought refuge inside.
Visit the BBC for key points of the agreement and background stories and features
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