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The decision to close the case came after Malindi Principal Magistrate Ivy Wasike ruled that the court did not have jurisdiction to hear terrorism charges that the prosecution had sought to add against Mackenzie.
The magistrate also ruled that the suspects must be released since they had already been held in custody for the maximum period of ten days.
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In her ruling on Tuesday, May 2, the Magistrate noted that the Malindi court did not have the jurisdiction to give formal anticipatory bail, and that it could only be obtained from the High Court.
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She advised the suspects to apply for bail before the specialized court once they are arraigned.
The cult leader and his co-accused were immediately re-arrested by a team of police officers.
They are now expected to be moved to Shanzu, where they will face fresh charges.
This is a developing story, more to follow...