The baby who was stolen at Kenyatta National Hospital was on Tuesday found in Kawangware.
A resident called the police after noticing that her neighbour who had lost her pregnancy came home with a newborn.
The caller informed the police that the woman, only identified as Edna, was holding a baby yet she had reportedly miscarried.
Edna was arrested and taken to Muthangari police station as the police continue with investigations into the Sunday night theft.
Earlier, the Police released CCTV footage of the woman who allegedly stole a two-week-old baby at Kenyatta National Hospital.
A CCTV footage grab of the woman who stole the baby at Kenyatta National Hospital on Sunday. /FILE
The suspected child thief reportedly pretended to be a patient at the main referral hospital.
CCTV footage showed the woman donning a red sweater and a black skirt; her hair was unkempt at the time the clip was recorded.
She is seen speaking on the phone while the other hand clutches the baby wrapped in a shawl.
John Ouko, the baby's father, said his child Prince Ouko - whose twin brother was left behind, was stolen in a span of seven to 10 minutes.
Ouko said the theft was executed minutes after he arrived at the hospital with his ailing wife and sister in-law.
He said that as he was looking for help for his wife, he left the two twins with two different women who he was already accustomed to at the hospital.
The woman who stole the baby./courtesy
Ouko said they were forced to wait to see a doctor at the Accidents and Emergency section for more than nine hours.
At around
11.30am, the hospital admitted his wife to Room 108.
"After some minutes, one of the women who was carrying Brighton - the other child, rushed toward me with information that the other woman had taken off."
He reported the incident to the KNH management. The hospital
released a statement saying they have reported the matter to the police.
"Our internal security at the hospital is working round the clock to reunite the mother with the child," the statement from KNH read.