Former Sports CS Rashid Echesa will spend the weekend behind bars.
He will be remanded at Muthaiga police station until Monday.
Echesa was arraigned on Friday at the JKIA Court over a fake tender for a firearm deal amounting to Sh39.5 billion.
He was arrested on Thursday alongside three others linked to the fake deal.
In his ruling on Friday, JKIA court Chief Magistrate Lucas Onyina said Echesa will be remanded until Monday and directed police to conduct a search at all their premises before 6pm.
Echesa was directed to deposit Sh1 million police cash bail to secure his freedom, but the magistrate said his release will be determined after police conduct the search.
Onyima said if Echesa was released before the search, he might tamper with evidence.
The prosecution, through miscellaneous application, had sought to detain Echesa for 21 days to conclude investigations, but the court said they had not given enough proof that Echesa and the co-accused were a flight risk.
The prosecution further wanted Echesa detained so that he can fly with the police to the US for more investigations to charge him, but the court was of the view that the prosecution had not proven beyond doubt that they need him to fly.
Echesa is expected to appear in the same court on Tuesday for mention of the matter.
He however told reporters that his arrest is political.
"This is nothing but a political witch-hunt. I am ready to prove my innocence," he told reporters as he was whisked away by police.