Activist Mutemi Kiama has been released on a Sh500,000 cash bail.
He was ordered not to use his social media accounts and will be required to report to the investigating officer on a daily basis until April 18.
Mutemi was on Wednesday held at Central Police Station as the milimani magistrate court deliberated on whether to free or hold him for a longer period.
Police had sought 14 more days in order to conclude investigations into a poster of President Uhuru Kenyatta circulating on social media.
In an affidavit, investigating officer Patrick Kibowen said the suspect could have falsified a publication contrary to section 22(1) as read with section 22(2) (b) thereof.
According to the police, the alleged offenses took place between April 5 and 6, 2021 by way of publication on social media.
Mutemi, the court heard, was also suspected of contravening several provisions of the Computer Misuse and Cybercrimes Act.
The activist was apprehended on Tuesday night after sharing a notice with President Uhuru Kenyatta’s face and ID number warning the world against entering into loan agreements with him on behalf of the country.
The loan in question was approved by the International Monetary Fund (IMF) on Friday.
The Sh255 billion loan has caused uproar among Kenyans who reckon the Jubilee government has an insatiable appetite for loans.