The Employment and Labour Relations Court has reinstated Professor Olive Mugenda as the Kenyatta University Vice Chancellor.
This ruling was made pending the outcome of a petition seeking to force her to proceed on leave and retirement before her legal term expires.
Activist Okiya Omtatah, who filed the petition, said Mugenda had served her term and was required to vacate office.
Omtatah also wanted the position properly advertised as per the requirements.
Mugenda is set to retire in March this year.
She was appointed Vice Chancellor in 2007 and re-appointed by former President Mwai Kibaki in 2012 for another five-year term.
The institution argued it could not effectively operate without a VC.
It argues Prof Mugenda presided over the rapid expansion of the institution in both infrastructure, programs and student population and the case brought before the court was baffling on several levels.
The university claimed it would have been a first where a Vice-Chancellor is compelled to go on forced leave and eventual retirement having not completed her term without facing any specific allegations of impropriety or any wrong doing.
Its contends that Mugenda has not declined to vacate office and that the university has already advertised her position.
The Vice Chancellor was expected at the university later to resume her duties.