Senior Resident Magistrate Timothy ole Tanchu also offered to free the Neno Evangelism Centre head on a Sh1 million bond.
The court ruled that the State had not given compelling reasons to continue locking up the suspect, who has spent two nights in police cells.
The magistrate also granted Mr Ng’ang’a’s three co-accused Sh50,000 cash bail each or an alternative Sh100,000 bond with a surety each.
Mr Ng’ang’a is facing four charges over the July 26 crash that claimed the life of Ms Mercy Njeri on the Nakuru-Nairobi highway in Limuru.
The charges are causing death through dangerous driving, failing to report an accident, conspiracy to defeat justice and giving false information to police.
The preacher’s release came hours after unknown gunmen raided his Karen home on Friday morning and stole an unspecified amount of money.
The gunmen gained entry into the house by cutting window grills at 3.30am and fired two shots in the air before stealing the money and electronics.
Lang’ata criminal investigations chief Mbogo Mwaura said police were investigating the incident.
The pastor’s wife, mother and children were in the house when the break-in happened but were not injured.
The pastor had spent a second night at the Gigiri Police Station before appearing in court Friday.