The State, through the Director of Public Prosecution, has closed the file ousted Football Kenya Federation (FKF) President Nick Mwendwa.
In addition, the Anti-corruption court has directed the State to refund the cash bail of Ksh 4million to Mwendwa.
This is after the court had earlier directed that the State file a formal charge on the Mwendwa or close a file.
The Milimani Senior Principal Magistrate Wandia Nyamu added that the detention of Mwendwa by the police was exhibited in bad faith.
"Police arrested and detained Mwendwa irregularly which exhibited bad faith. They brought him to the court without a holding charge even after detaining him for a whole weekend," Magistrate Nyamu ruled.
Mwendwa was facing corruption, and abuse of office charges over the use of Ksh430 million advanced to FKF, which the Sports, Arts, and Social Development had assigned to manage football activities.
Cabinet Secretary of Sports Amina Mohamed then formed a caretaker committee to oversee the running of FKF for six months as Mwendwa's case was ongoing.
However, FIFA was disgruntled with the decision terming it violations of its principal over interference by a third party member and threatened to ban Kenya from participating in football activities.
"We kindly ask you to inform the Cabinet Secretary that in the event her decision to appoint an FKF Caretaker Committee and the correlated secretariat was to be upheld, we would have no other choice than to submit the present matter to the Bureau of Fifa Council for consideration and decision," part of the statement by FIFA.