Kyagulanyi was charged with treason over his alleged role in the stoning of President Yoweri Museveni’s convoy this month.
The MP popularly referred to as Bobi Wine, was first released and rearrested by police after a court-martial dropped charges against him on Thursday.
Pressure begun mounting for the release of the lawmaker after he and other MP’s were kept in detention over the stone pelting incident.
Bobi Wine, who has been in detention for two weeks, was granted bail along with 11 other co-accused colleagues who are facing treason charges.
The state says Bobi Wine and other opposition supporters are accused of mobilising and attacking president Yoweri Museveni’s convoy.
Justice Stephen Mubiru also granted bail to Arua Municipality MP-elect, Kassiano Wadri, the candidate Bobi Wine was campaigning for when they were both arrested on 13th August.
Other legislators including Jinja East MP, Paul Mwiru, Ntungamo Municipality MP, Gerald Karuhanga were also granted bail along with several opposition supporters who wre detained during the crackdown.
Wadri who won the hotly contested Arua by-election was however restrained by the court, from operating within his constituency for three months, to allow for the investigations to be conducted in a calm environment.
Several people outside the court and on social media celebrated the release of Bobi Wine, even as they continued to demand for the release of all the other detained opposition supporters using the hashtag #FreeArua33.