Starehe MP Charles Njagua a.k.a Jaguar has been released on a cash bail of KShh500,000 after a week-long stay in police custody.
The prosecution had sought to detain him for 14 days to allow them to complete investigations but the court rejected it.
Last week on Thursday the embattled MP sought a bail application which was denied by the court.
While releasing him, the court slated the hearing of his case for September 4, 2019.
Jaguar was arrested last week on Wednesday on charges of incitement. He made a statement demanding that traders of Chinese, Tanzanian and Ugandan origin be deported for engaging in retail business.
The MP, flanked by his supporters, had threatened to invade the premises of the foreigners, rough them up and take them to the airport where Interior department and Immigration would deport them.
But Foreign Affairs PS Macharia Kamau said Kenya deeply regrets the careless and inciteful language in public utterances made by the MP.