The nominee was pressed to explain his alleged ties with Suna East MP Junet Mohamed and whether there is conflict of interest.
Police have since commenced a probe into the incident.
The U-turn comes a day after HELB CEO noted the agency would be taking decisive action against loan defaulters.
Ethekon was put on the spot over his current job in South Africa and how it might interfere with the polls.
The highly anticipated event will take place on Sunday and will be presided over by President William Ruto.
The said dealers also risk additional Ksh50,000 and Ksh10,000 fines.
The software developer was arrested for allegedly developing the Anti-Finance Bill website.
This is not the first time the residents have taken to the streets.
The CS gave the directive following concerns from education stakeholders.
The suspension is to take place with immediate effect.