Amani National Congress (ANC) has lifted the suspension of nominated MCA Jackline Mwakha Okanya but asked her to pay a fine of Sh500,000 in the next six months.
The party's National Disciplinary Committee communicated her reinstatement in a December 10 letter from Secretary-General Barack Muluka to the Kakamega Speaker.
"In principal, her suspension from the party has been lifted under the understanding that she will proceed to fulfill the requirement made of her by the disciplinary committee," the letter stated.
Mrs Okanya, who was suspended on March 20, said she was holding consultations on how to respond.
The party's decision to suspend the MCA resulted from an attempt by ANC ward representatives on March 17, to overhaul the minority leadership at the Kakamega assembly.
ANC's leaders rejected the move after 22 out of its 29 MCAs met at a Kakamega hotel and proceeded to pick new leaders, with Mrs Okanya as the chief whip.
The disgruntled MCAs picked Mr Walter Andati to replace Mr David Ndakwa as minority leader while former Senator Godliver Omondi was selected as the deputy minority leader.
Mrs Okanya challenged the party's decision in court but suffered a setback after Kakamega Chief magistrate Bildad Ochieng ruled that the court lacked jurisdiction to handle the matter.
The magistrate asked her to make use of the party's internal dispute resolution mechanism and the Political Parties Disputes Tribunal before turning to court.
ANC, whose leader is politician Musalia Mudavadi, in November suspended Kakamega Senator Cleophas Malala but he later dared officials to expel him.
The senator said that he was not apologetic for campaigning for ODM candidate Mr Bernard Imran Okoth in the November 7 Kibra by-election.
Mr Malala said he would rather face a by-election than apologise to Mr Mudavadi.
Mr Malala, who accompanied by nominated MP Godfrey Osotsi, said the move to suspend him from the party was meant to humiliate him.
The party expelled Mr Osotsi in March on allegations of misuse of the party's funds when he served as secretary-general before the 2017 general election. He denied the claims.