The best place I know of to follow Kenya news is the Kenya page at AllAfrica.com, with coverage from Kenya's leading papers and video. AllAfrica.com is blogging about the election crisis here. The Stanford University African Studies website has a breaking news page.
The latest news: The Nation (Nairobi) is reporting that the Kenya Attorney General has called for an independent investigation, and prints his statement. With many urging President Kibaki and challenger Raila Odinga to meet, BBC is reporting that the president is "open to" talks with the opposition, and that Archbishop Desmond Tutu has traveled to Kenya to try to mediate. According to The Nation, Tutu met for two hours with Odinga, and afterward Odinga made a statement supporting the call for a dialogue.
For more background, the BBC has a helpful article on tribalism in Kenya. BBC also has a country profile, with many Kenya media links.
Update: Michael Dorf sets ethnic violence in Kenya in a broader context.
The image is of a statue in a Nairobi park commemorating Kenya's independence in 1963.