Kenyan President Mwai Kibaki on Wednesday dissolved his cabinet following overwhelming rejection of the draft constitution in which he fully backed.

In a televised address to the nation, President Kibaki said following the results of the referendum it was necessary to reorganize his government to make it more cohesive and better to deliver services to Kenyans.

"Following the results of the referendum, it has become necessary for me, as the President of the Republic, to reorganize my government to make it more cohesive and better able to serve the people of Kenya," Kibaki said.

"Accordingly, in accordance with the powers conferred upon me under the constitution of Kenya, I have directed that the offices of all ministers and all assistant ministers become vacant," the president said.

"Consequently, the occupants of the said offices cease to hold their respective offices with immediate effect. A reconstituted government will be in place within two weeks," he concluded.

The referendum result is being seen as a setback for President Kibaki, who led the "Banana" campaign for a "Yes" vote.

Kibaki's cabinet was split over the constitution, with seven ministers joining with the opposition, urging voters to reject the draft.

Kibaki, who had campaigned heavily for the revamped constitution, conceded defeat in a live television address to the nation.

Many used the poll to protest at Kibaki's leadership, and crowds of people celebrated the result on the streets of the capital, Nairobi.

The latest figures released by the Electoral Commission of Kenya (ECK) show 3,548,477 voters (57 percent) voted "No" while 2,532,918 (43 percent) backed the draft.

Analysts had predicted cabinet reshuffle since maneuvering will increase ahead of general elections due in 2007.

The key issue in the constitution was the introduction of the post of a prime minister.

The president had argued that the constitution -- the first since Kenya's independence in 1963 -- would be a modernizing measure.

But opponents accused him of breaking promises to devolve some of his powers to a new post of prime minister. They argued this would reduce corruption by ending the era of rule by "Big men".

(Xinhua News Agency November 24, 2005)