The cavalcade will be held at the Moi Air Base grounds located in Eastleigh.
The president is due at the venue at 11am.
A statement from the Presidential Press Service says the ceremony will be attended by Defence Minister Yusuf Haji and Chief of the Defence Forces General Julius Karangi.
The farewell party is meant to thank and recognise the Head of State for the role he played in the last 10 years as Commander in Chief of the Armed Forces.
This will be the second time such a ceremony is held after President Daniel Moi was accorded one 2002.
Kibaki is expected to step down after controversy surrounding the March 4, 2013 presidential election is finalised. A petition challenging the election of President Elect Uhuru Kenyatta is already before the Supreme Court.
President Kibaki could remain in office until June if the petition file by the Coalition for Reform and Democracy is successful. The Constitution provides that the incumbent stays in office until the president-elect is sworn in.
The Head of Civil Service Francis Kimemia has in the past explained that a fresh presidential election will be held on May 31 in case there is a successful petition of the outcome of the first round of the election.
“The Constitution in Article 142 provides that the incumbent president will continue to be in office until the next president-elect is sworn in. There will be no vacuum in terms of the Cabinet,” he said.
“The president is mandated to wait until he has handed over instruments of power to the next president. I want to assure Kenyans that there will be no vacuum whatsoever,” he added.
He indicated that in the event a repeat poll is held, the swearing in of the new president will be held on June 18, 2013.
The Constitution requires the Independent Electoral and Boundaries Commission (IEBC) to hold fresh elections within 60 days following a successful petition in the Supreme Court of the result of a presidential election.