In its ruling, the court allowed his release on bond, noting that there was no immediate reason to keep him in custody as investigations and court processes continue.
The judge stated that the accused had cooperated with authorities and was not considered a flight risk.
As part of the bond terms, Manyora is expected to attend all court sessions without fail and avoid interfering with witnesses.
The case is part of a wider dispute surrounding the management and control of Nairobi Hospital, which has in recent months been at the center of legal and administrative battles.
The hospital, one of the country’s leading private health institutions, has faced internal conflicts involving its leadership and governance, raising concerns among stakeholders and the public.
Prosecutors told the court that the Sh516,000 in question was allegedly obtained from a bidder during a process related to the hospital’s affairs.
They argued that the matter required further examination to establish whether any criminal conduct occurred.
However, the defense team dismissed the accusations as baseless, insisting that there was no evidence linking Manyora to any illegal activity.
According to his lawyers, Manyora has built a reputation as a respected commentator on political and social issues, and they urged the court to consider his standing in society.
They added that he was ready to comply with all court conditions and defend himself through the legal process.
The court also set April 13 as the date for the next mention of the case.
On that day, both the prosecution and the defense are expected to update the court on the progress of the matter, including any new evidence or developments.
The Nairobi Hospital takeover case has attracted significant public attention due to the institution’s importance in Kenya’s healthcare system.
Observers say the outcome of the case could have wider implications for accountability and governance in private institutions.