The court has been asked to hold Hassan Babakar Osman on claims that he is a flight risk since his permanent domicile is not yet known.
The magistrate heard that the Mombasa businessman is associated with ISIS /ISIL recruiters in and outside the country.
He has allegedly been using proceeds received from money laundering to facilitate the recruitment of youths to join terror groups.
According to police, Osman who was arrested on Sunday at his Muthaiga home is wanted by the Saudi Arabia government.
But the foreigner has objected to the application by ATPU claiming that it is a tactic to scare him out of the country so as to give up about 100 acres he allegedly owns at the coast.