The High Court, on Tuesday, set Starehe Member of the National Assembly Charles Njagua, popularly known as Jaguar, free.
In the ruling, the judges awarded the embattled leader a bail of Ksh 500,000.
The lawmaker had applied to be released on bail after a similar application on Thursday last week was denied by the court.
The hearing of his case is set for September 4, 2019.
The MP was accused of incitement to violence against foreign traders after a video of him threatening to gather a team of young men and women to round up foreigners operating in sections of the City, beat them up then escort them to the airport for deportation surfaced.
Authorities wanted him behind bars for more days as they put together a case against him.
The musician turned politician was arrested outside Parliament following his remarks on foreigners working in Kenya that were termed as xenophobic.
The prosecution told the court that the legislator had made the utterances with a clear intention to incite Kenyans against foreign nationals.
Appearing before Chief Magistrate Francis Andayi, Jaguar denied the offence.
Some of the witnesses set to testify in the case include officers from the National Cohesion and Integration Commission (NCIC) and those of the Communications Authority (CA).
