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Former Garsen Member of Parliament was on Thursday afternoon released on Sh3 million cash bail.
The Jubilee party politician denied charges of fraud brought against him by the Ethics and Anti-Corruption Commission (EACC).
An unidentified woman is reported to have indicted Mr Mungatana in a Sh51.5 million scandal in the Kilifi County government.
According to the woman, the politician used her company to obtain Sh9.1 million from the county government without any goods or services exchanged.
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14 suspects at large
The Office of the Director of Public Prosecutions argued that though 7 others had been arrested together with the former MP, 14 others are still under investigation on the same scandal.
Those arrested together with Mungatana are businessman Benaya Kisaka Mugavana, Lucy Wanjugu Kibogo a businesswoman and finance officials Josephine Felix Muramba, John Kahindi Kalume, Paul Teido Mwazo, Ebrahim Mwanje Zia.
The charges brought against them include fraudulent acquisition of public property, uttering false documents and dealing with proceeds of crime.
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