The suspects will be charged with, among others, conspiracy to commit an offence of corruption, abuse of office and money laundering.
Dr Kidero is currently facing corruption charges together with former senior officials in his administration.
They have denied charges of corruption and economic crimes including failure to pay tax to a public body.
Former Nairobi Governor Evans Kidero and Nyakach MP Joshua Aduma Owuor are among 17 suspects set to be persecuted over a Sh68 million scandal.
Detectives from the Ethics and Anti-Corruption Commission (EACC) on Friday arrested Dr Kidero and took him to Integrity Centre for interrogation.
A statement from the Director of Public Prosecutions Noordin Haji said the inquiry relates to allegations that the Nairobi City County made illegal payment of Sh68 million to the law firm of Wachira Mburu, Mwangi & Company Advocates.
The statement added that EACC initially submitted the duplicate inquiry file to the DPP last December but there were gaps that required further investigations before charges could be preferred.
Other than Dr Kidero and Mr Owuor, who was then acting director legal affairs at the defunct city council, former chief of staff during Kidero’s administration George Wainaina Njogu, former Nairobi mayor John Ndirangu Kariuki and former councillor Paul Mutunga Mutungi are implicated in the case.
Suspects
Others include Mr Manasseh Karanja, a former acting director of internal audit at the county, Ms Philomena Kavinya Nzuki, a principal accountant, Mr Ng'ang'a Mungai, Ms Charity Muringo Ndiritu, Mr Peterson Njiru, Mr Ekaya Alumasi, Mr James Mbugua, Ms Elizabeth Wanjiru Nderitu and Ms Alice Njeri Mundia, all accountants.
Others are Ms Hannah Muthoni Kariuki, who is alleged to have received Sh11 mil-lion, and Mr John Ngari Wainaina and a company identified as The Cups Limited.
The DPP said he has directed that the suspects be charged with, among other offences, conspiracy to commit an offence of corruption, abuse of office, unlawful acquisition of public property, dealing with suspect money and money laundering.
Dr Kidero is currently facing corruption charges together with former senior officials in his administration.
They have denied charges of corruption and economic crimes including failure to pay tax to a public body.