Nyakach MP, Joshua Aduma Owuor, has denied charges of abuse of office and conspiracy to defraud Nairobi County Government of 10 million shillings allegedly paid in legal fees to a dead lawyer in 2011.
Chief Magistrate Lawrence Mugambi freed the lawmaker on three million shillings cash bail.
He was arrested on Thursday by Ethics and Anti-Corruption (EACC) officers in Kisumu.
A statement from the Chief Executive Officer of the EACC Twalib Mbarak revealed that the legislator has been arrested over claims of involvement in what the commission describes as organised economic crime.
The Commission said his arrest preceded an investigation into the circumstances in which Nairobi City County irregularly paid 68 million shillings to M/S Wachira, Mburu, Mwangi and Company Advocates.