Murithi Mutiga, a senior analyst with the International Crisis Group, said the meeting between the two "titans" of Kenyan politics was key because they have been feuding for so long.
They referred to each other as "brother" and told Kenyans of their resolve to quash their differences and heal Kenya.
Kenyatta added that the two leaders would begin to discuss "what ails us and what creates division amongst us".
Tillerson said "all the credit" for the meeting went to the Kenyan political leaders, in response to a question as to whether the USA had a role in organising it.
The two leaders said in a statement they agreed to set up an office staffed with advisers from both parties, to deal with issues ranging from ethnic divisions to the opposition's disputes with the 2017 election.
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The meeting did not happen as the result of pressure from Western countries, there was no external pressure on the two leaders from western countries, specifically the U.S. for the leaders to hold the talks ahead of USA secretary of state Rex W. Tillerson's three-day visit beginning on Friday. "Elections come and go, but Kenya remains", Kenyatta said.
Mr Odinga pressed a lawsuit challenging Mr Kenyatta's victory in last year's August election and the Supreme Court ordered a new election.
Around 100 people died mainly in clashes between the security forces and opposition supporters during months of acrimonious campaigning and protests.
The shocking statement is possibly to decrease the political pressure in the richest economy in East Africa as well as the center of regional security, diplomacy and trade.
Uhuru Kenyatta and US Secretary of State Rex Tillerson take a stroll.
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While political violence did not come close to that which followed the 2007 vote - when over 1,100 lives were lost - the disputed elections led to the deaths of over 100 people, a lot of them shot by police.
Odinga said the opposition had made a decision to change tactics for the sake of the country's unity.
"We refuse to be the leaders under whose watch Kenyans lead into a failed nation".
Tillerson who arrived in Nairobi on Friday as part of his African tour was received by Foreign Affairs Cabinet Secretary Monica Juma.
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