A magistrate's court on Wednesday acquitted Football Kenya Federation (FKF) president Nick Mwenda of corruption charges, ruling they were "unfounded and unconstitutional".
Mwendwa, 44, faced accusations of misappropriating Sh38 million ($337,000) marked for the development of Kenyan football.
"This court finds that the fair trial of the accused is grossly threatened... the charges are unfounded and unconstitutional," ruled Kiambu senior principal magistrate Wilson Rading.
Mwendwa was first arrested in November 2021 after the Kenyan government disbanded the Football Kenya Federation (FKF) and set up a caretaker committee to run the game over the alleged financial impropriety during his tenure.
Following his ouster and the FKF's disbanding, Kenya were suspended by football's world governing body FIFA over government interference in the running of the sport.
The charges were dropped on July 6 after a court found the state had failed to provide any evidence.
However, Mwendwa was re-arrested a day later when prosecutors said fresh evidence had been made available to police.
Rading ruled that Mwendwa should not be arrested and charged based on the findings of that probe.
FIFA has since lifted a ban on FKF following the government's decision to reinstate the body.
The ruling on Wednesday clears the way for Mwenda, who stepped aside and handed over the reins to the FKF vice president Doris Petra, to resume his role.
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