KPM is a subsystem of set theory designed to formalize a recursively Mahlo universe of sets. In this paper we show that a certain ordinal notation system is sufficient to measure the proof-theoretic strength ofKPM. This involves a detour through an infinitary calculus RS(M), for which we prove several cutelimination theorems. Full cut-elimination is available for derivations of $\Sigma (L_{\omega _1^c } )$ sentences, whereω 1 c denotes the least nonrecursive ordinal. This paper is self-contained, at least from a technical (...) point of view. (shrink)