The head of state did not formally dissolve the National Assembly, which had been due to reconvene on Tuesday, and call new elections as demanded by the opposition earlier in the day.
"In exercise of the powers conferred by ... the constitution of Kenya, I prorogue parliament with effect from 25 November 2005," the embattled Mr Kibaki said in a proclamation released by his office.
Analysts said Mr Kibaki might have opted for prorogation, which suspends sessions without going as far as dissolution, to avoid a possible vote of no-confidence, which could be fuelled by prevailing rage against his regime.
The media lauded the unprecedented mass sacking as a step to restore shaken confidence in Mr Kibaki's leadership following the defeat of the draft charter in a Monday referendum, but the opposition said the move did not go far enough.
"More than even the cabinet, it is parliament which was the central player in the betrayal of the people's constitution," said spokesman William Ruto.
"This parliament is now discredited and the president must dissolve it to pave the way for the people of Kenya to elect representatives with a new mandate," he told reporters.
Mr Ruto, the executive secretary of the opposition Kenya African National Union (KANU), said the current parliament had defied the wishes of the people by agreeing with Mr Kibaki to send the new charter to a referendum.
He stopped short of calling for the president to resign but under Kenya's existing constitution the president must be a member of parliament and a presidential election must be held if he is not returned to the legislature in polls to choose a new National Assembly.
Should Mr Kibaki decide to dissolve parliament, new legislative elections must be held within three months.
There was no immediate reaction from Mr Kibaki, who sacked his divided cabinet to reassert his authority 24 hours after conceding defeat in the referendum on the first major change to Kenya's constitution since independence from Britain in 1963.
Officials said that Mr Kibaki had begun vetting candidates to replace the 29 ministers and their deputies whom he fired as most reported to clear personal effects from their former offices.
"The president made the right decision... but I hope to be appointed in the next cabinet," former education minister Beth Mugo told reporters.
Nearly 60 percent of voters rejected the proposal that had retained near absolute powers in the presidency, dealing Mr Kibaki a major blow amid deep splits in his administration and public disenchantment with his rule.
Analysts said the president would consult with his critics in the sacked cabinet, notably influential former roads minister Raila Odinga, who led the charge against the draft after helping Mr Kibaki win 2002 elections.
They said he would also likely seek advice from his predecessor, Daniel Arap Moi, who ran the east African nation with an iron fist for 24 years before retiring after Mr Kibaki bested his chosen successor in those polls.
Mr Kibaki has been criticised for failing to follow through on numerous
campaign pledges for reform and the defeat of the constitution was widely seen as a no-confidence vote.
His lackluster performance, particularly on fighting corruption and entrenched tribalism, had left many Kenyans skeptical about whether the 74-year-old economist had the stamina to push through real change.
All of Kenya's major newspapers backed Mr Kibaki's boldness in firing the entire cabinet, which had been mired in disputes over the new constitution and unable to meet since July, but legal experts debated its legality.
Attorney General Amos Wako said Mr Kibaki acted within the law but veteran lawyer and opposition lawmaker Mutula Kilonzo disagreed.
"It's totally illegal and unconstitutional what the president has done," Mr Mutula said.
"The country cannot be without a cabinet, not even for a minute."