We have resolved Kelu-1 into a binary system with a separation of \sim 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 \pm 0.01 magnitudes in the K ^ { \prime } filter and 0.50 \pm 0.01 magnitudes in the H filter . We derive spectral types of L2 \pm 1 and L3.5 \pm 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 \arcdeg and the orbital period to \gtrsim 40 years .