Public Service Principal Secretary Lillian Mbogo Omollo on Wednesday left the Kenyatta National Hospital (KNH) and was sent back to the Lang'ata Women's Prison.
She was discharged from the hospital after Directorate of Criminal Investigations (DCI) detectives established that her hospital stay was unwarranted.
A source who spoke to Citizen TV explained that DCI boss George Kinoti did not wish to create an impression that high profile suspects can evade justice.
"Many top officials will be arrested and if the PS is allowed to avoid prison by staying in the hospital, then many will use that when they are arrested," the source outlined.
DCI officials dismissed a letter signed by consultant physician Stanley Ngare who had sought to have the PS excused from court sessions on claims that she was not fit to stand trial.
"The patient is still not stable enough to attend court proceedings and requires continued care in the hospital," the medical report read in part.
The PS will now remain in the remand prison as she awaits the ruling on her bail application along with her 40 co-accused implicated in the theft of Ksh468 Million from the National Youth Service (NYS).
Chief Magistrate Douglas Ogoti had denied bail to the applicants when they appeared before him on June 5 citing that the individuals were facing serious economic crimes.
Justice Edwing Ong’udi of the High Court, however, heard submissions from lawyers of the 46 suspects and adjourned the hearing to give a final ruling on the matter on June 19.
PS Omollo, senior finance officer Bernard Masiga Ayienga and former radio host Angela Angwenyi Nyarangi are also among those who have had their banks accounts frozen as investigations continue.