Kibaki said opposition leader Raila Odinga would serve as Kenyan prime minister and the two sides would work together to move Kenya forward, the BBC reported Sunday.
"My challenge to the new Cabinet members and the entire national leadership at all levels is: let us put politics aside and get to work," Kibaki said.
"Let us build a new Kenya where justice is our shield and defender, and where peace, liberty and plenty will be found throughout our country."
Of the 40 Cabinet posts named under the new power-sharing agreement, half belong to opposition officials and half to the Party of National Unity.
The dispute over the makeup of the Cabinet triggered widespread violence since last December's presidential elections. The BBC said that violence left 1,500 dead across Kenya.