Uasin Gishu Senator Jackson Mandago has been released on a Sh2 million bond.
He was released alongside two other co-accused Joshua Lelei and Meshack Rono.
The court also ordered that they pay a surety of a similar amount or a cash bail of Sh500,000.
The court has deferred plea-taking following reports that a fourth suspect was missing.
The three are accused of conspiring to steal Sh1.1 billion from a Kenya Commercial Bank account in Eldoret registered under the Uasin Gishu Education Trust Fund.
This Fund was intended for overseas university fees for scholarship students.
On Wednesday, the Director of Public Prosecutions had ordered the arrest of Uasin Gishu Senator Jackson Mandago and three others over Finland and Canada Overseas Education Programme.
