Eldoret West Police boss Samwel Mutunga says the former third year student Nixon Kipkoech was arrested in the house they have been using as a hideout at Mwanzo Estate in Eldoret.
Mutunga said the gang was linked to the thefts at M-Pesa shops in Machakos, Nakuru, Kakamega and Kitale among other areas where they are wanted to face charges.
Two women who are members of the gang escaped and are being sought by police.
"They use mobile phone numbers and stolen IDs to steal cash from Mpesa shops and we have been after them", said Mutunga.
He said Kipkoech had already been charged in a Kakamega court but was out on bond yet he continued with the same criminal activities.
Mutunga said they recovered some of the mobile phone numbers and IDs used in the rackets.
The arrest comes just two month after police in the area arrested a gang of men also involved in similar rackets.