Mr Mwamposa, was arrested together with seven other suspects though the charges against him were not revealed, although, Interior Minister George Simbachawene accused the church of not taking sufficient precautions and of violating the terms of its permit for the meeting, which ran two hours later than planned.
He was arrested in the coastal town of Dar es Salaam, about 540km away from Moshi, where he had gone to preach in another branch of his church.
Kilimanjaro Regional Commissioner Anna Mghwira confirmed to the BBC that the preacher had been released on bail.
She said police have gathered preliminary information and investigation is ongoing.
Twenty people – including five children – lost their lives following a rush to be anointed with “blessed oil”.
The preacher had told hundreds of people gathered at the service to pass through an area where the oil had been poured over the floor.
The crowd rushed forward to try to step in the oil in the hope of being cured of sickness.
