Busia Governor Sospeter Ojaamong will spend two nights in a police cell, pending determination of his bail application.
Mr Ojaamong became the first sitting governor to face corruption charges.
The county chief was accused of conspiracy to defraud the county government of Sh8 million, engaging in projects without proper planning and abuse of office.
The governor presented himself to the Ethics and Anti-Corruption Commission but ended up being detained.
The decision to lock him up followed a long-day court appearance where he denied the charges.
Prosecutors Alexander Muteti and Victor Owiti opposed their bail application, arguing that they would interfere with witnesses and scare the junior officers who have recorded statements.
According to the prosecution, demonstrations in Busia to protest the governor’s prosecution were an indication that he would put the lives of investigating officers and other officials at risk.
But his lawyer James Orengo dismissed the claims, arguing that there were no compelling reasons to warrant denying bail.
“What example are we sending to Kenyans that every time they come to court they have to beg to be released on bail when the Constitution is clear that bail is a fundamental right and part of fair trial,” said Mr Orengo who is also Siaya Senator.
He said he was disappointed by the Director of Public Prosecution’s habit of opposing bail applications even in instances where accused persons had shown good character by cooperating with investigators and presenting themselves to police.
According to the lawmaker, the cases have been under investigation since 2014 when Ojaamong was in office and he would have already interfered with the witnesses if he feared the cases had any truth.
Pleas by his lawyers to have him released failed.
“There are voluminous submissions made by the parties which I need to consider before making a comprehensive decision to release him on bail or not,” said Chief Magistrate Daniel Ogoti.
“He will therefore be remanded alongside the other accused persons at the anti-corruption commission police cells until Friday,” he added.
Ojaamong was charged alongside Finance Executive Bernard Yaite, Chief Finance Officer Leonard Obimbira and head of treasury accounting Samuel Ombui.
In the first count, the four were accused of conspiring to defraud the Busia county government of Sh8 million by entering into an agreement for a feasibility study on solid waste management.
The study was to be done by Madam R Enterprises Limited yet the company’s services had not been properly secured, according to the charge sheet.
The governor also faced an alternative charge of abuse of office.
He was also accused of engaging in a project without proper planning by entering into an agreement for the project while on a trip to Germany while aware that the money had not been budgeted for.