Govenor Jonathan of Uasin Gishu has suspended Finland's education programme that was being coordinated by the county.
The move follows claims of graft in the programme which affected more than 380 students from Uasin Gishu.
Money collected from some of the students was to be paid to colleges in Finland as fees were not remitted and some of the students have been threatened with deportation.
"We have resolved that there will be no new students recruited for the programme until we sort out the challenges we have currently," said Bii.
He was speaking at his office in Eldoret after a meeting with local leaders including MPs Oscar Sudi of Kapsaret and Janet Sitienei of Turbo.
Bii said already officials from the EACC had visited his office as part of investigations into the matter.
The Finland programme was initiated during the regime of former governor Jackson Mandago and it was to run through a private trust with the county acting as a guarantor for the students.
Parents claim to have paid money for fees through the Trust but it was not forwarded to the colleges in Finland.
Bii says the county working with affected parents and students had opened a new bank account to facilitate payment of the fees.
Sudi said they had agreed that they would ensure students who are already in Finland continue with their studies.
"As leaders, we will do everything possible to ensure learning for the students is not affected', said Sudi.
He said those who may have diverted the money in question would be dealt with as per the law.
Bii has suspended three senior officers at the county linked to the fraud claims.
The leaders who also included deputy govenor John Barorot said they had agreed that the Finland programme was noble and would continue later.
"We will not allow such a good programme to collapse because of fraud by a few individuals who will have to pay for their sins," said Sudi.
The MPs urged affected parents and students to be calm as the matter was being sorted out.
"We should not politicise these issues and blame each other. We are looking for solutions and everything will be resolved," said Sudi.
He said the leaders were also dealing with another controversy in the county involving the First Choice Recruitment Agency.
The agency has been hit by a row following claims that it collected money from youth in Uasin Gishu to secure jobs for them in Qatar and other countries but failed to do so as from last year.
CEO of the firm Judy Chepchirchir has denied any wrongdoing and noted that her firm was doing legitimate business and had not conned anyone.
On Sunday she flagged off more than 100 youths who will fly out this week for jobs abroad.
Sudi said they would also meet the owners of the firm and sort out challenges concerning their programmes.
