High Court Judge Mohammed Warsame ruled that the government did not follow procedure in ejecting Karbolo from the cement manufacturer.
Karbolo moved to court immediately he was fired to challenge his sacking by the president in an announcement made in a special gazette notice published on February 10.
“In exercise of the powers conferred by section 6 (1) (a) of the State Corporations Act, I, Mwai Kibaki, President and Commander- in-Chief of the Kenya Defence Forces, appoint Isaac Mpapuluu ole Mapenay (Dr) to be Chairman of the East African Portland Cement Company Limited, for a period of three (3) years,” read the notice signed by the Head of State.
But Karbolo argued before Justice Warsame that there has been concerted effort by the government to remove him from the board without following the law.
Boardroom wrangles came out in the open in December 2011 and have since been played out in the courts.
Karbolo has been dogged by allegations of mismanagement and malpractice that saw him and the entire board suspended by acting Industrialisation Minister Amason Kingi.
The directors had challenged their suspension and were reinstated by the courts.
The High Court decision now sets the stage for yet another round of court room battles pitting the Judiciary against the Executive.