A government spokesman said that Rotich was detained by Kenyan police on Monday after the head of public prosecutions ordered his arrest over the construction of two mega dams, which allegedly led to the loss of millions of dollars in taxpayer money.
Rotich will be replaced by the current Labour Minister Ukur Yattani, state house spokesperson Kanze Dena said in a statement.
Italian company CMC Di Ravenna was awarded the tender to construct the dams despite being under liquidation back in Italy.
He was charged with abuse of office, conspiracy to defraud, financial misconduct and fraudulent acquisition of public property, among other things, on Tuesday and released on bail.
This comes amidst growing calls for President Uhuru Kenyatta to crack down on civil servants accused of graft.
(Edited by Emmanuel Yashim)
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