Mombasa based Businessman Polycarp Ocholla was arrested on Monday over illegal oil siphoning.
Mr Ochola was accused of siphoning the product from the Kenya pipeline company in Muhoroni.
Ocholla has investments in the security sector and owns the Guardforce Group of Companies
In 2015 the tycoon was involved in a case where his wife and house girl plotted to kill him.
Rose Adhiambo and her maid Dorris Akinyi allegedly hired hitmen to kill Mr Ocholla at Beach Road Estate in Mombasa.
Ms Adhiambo was arrested after she was caught by her husband withdrawing 1.2 Million from the bank to pay the assassins.