It was established by Denise A.O Kodhe and members of the National Rainbow Coalition in 2002.
Members of the former National Democratic Party NDP of Raila Odinga which had joined KANU only in summer 2001 left the then ruling party together with KANU politicians who were opposed to what they perceived as imposition of Kenyatta as candidate by the then president Moi.
After leaving KANU, they did not take the risk of attempting to register a new party under a government controlled by Moi but instead opted to join the existing LDP which offered them a space.
Tensions developed soon as Kibaki did not honour a memorandum of understandíng signed between the partners in NARC and which envisaged a share of 50% of cabinet posts for LDP plus a new constitution which would curtail the power of the president and create the post of a prime minister which was to go to Odinga.
Instead, LDP and KANU formed a coalition known as Orange Democratic Movement, later registered as a political party, ODM-Kenya.