  We have resolved Kelu-1 into a binary system with a separation of ~290 mas
using the Laser Guide Star Adaptive Optics system on the Keck II telescope. We
have also re-analyzed a 1998 HST observation of Kelu-1 and find that the
observed PSF is best fit by a binary object separated by 45 mas. Observations
on multiple epochs confirm the two objects share a common proper motion and
clearly demonstrate the first evidence of orbital motion. Kelu-1B is fainter
than Kelu-1A by 0.39+/-0.01 magnitudes in the K' filter and 0.50+/-0.01
magnitudes in the H filter. We derive spectral types of L2+/-1 and L3.5+/-1 for
Kelu-1A and B, respectively. The separation of flux into the two components
rectifies Kelu-1's over-luminosity problem that has been known for quite some
time. Given the available data we are able to constrain the inclination of the
system to >81 degrees and the orbital period to >~40 years.
