The owner of the Embakasi gas plant Derrick Kimathi has been released on a cash bail of Sh500,000 with an alternative of Sh2 million bond.
Milimani Principal Magistrate Dolphina Alego also ordered him to deposit his travel documents to court including his passport.
The orders came despite the prosecution's application for an extension of the detention period to 14 days.
Presenting the reasons for the request, Investigating Officer (IO) Isaac Kariuki said they need to record evidence from 30 more victims and neighbours of the incident scene.
"If the suspect is released, he may interfere with the same," the officer based at the Nairobi City County regional investigative office said.
He told the court that so far, they have recorded statements from at least 300 witnesses and obtained medical reports in the form of P3 forms from 265 victims.
He added that they needed time to get reports from officers from the Engineering Board of Kenya, NEMA, EPRA, KEBS, and the office of public works in Nairobi City County.
Kariuki told the court that on Tuesday, they recorded the suspect's statement and from the same, there emerged more areas that need to be covered in investigations.
Further, the court heard that the Investigating officers need to obtain clearance to visit Tanzania and Uganda to establish the source of the gas in the trucks.
They also need to visit the scene with the suspect to reconstruct it.
"We feel he is of high importance to assist and reconstruct the scene," the IO said.
Kimathi's counsel Wandugi Kirathe however opposed the application, saying it was wrong for his client to be held yet again.
He poked holes into the grounds submitted by the state, saying it was not the suspect's mandate to show them where to conduct their investigations.
He further submitted that his client had been sickly, adding that he had to be taken to a medical facility as he had a condition affecting his breathing.
Upon consideration, the court ordered that the man be released on the above terms as investigations are ongoing.
In the meantime, if Kimathi is unable to meet the bail/bond terms he is to be detained at Capitol Hill Police Station.
Alego directed the litigants, if the need arises, to seek any other orders at the High Court.
Kimathi had been detained alongside NEMA officials Joseph Makau, David Ong'are and Marrian Kioko for a maximum of 21 days before they were released earlier.
This was after the NEMA officials moved to the High Court for a judicial review challenging the issue of continued detention.
The judge found they could be released as investigations are ongoing.
The suspects are being investigated in cases of murder, conspiracy to commit a felony, negligent act and abuse of office.
The Embakasi gas explosion occurred on the night of February 1, leaving at least three killed among them a child, and at least 300 injured.
In the incident, a lorry carrying gas cylinders exploded in Embakasi district at about 11:30 pm resulting in an "igniting a huge ball of fire", according to an officer.