Police have arrested a suspected Islamist fanatic who once received £1m ($1.5m) in compensation for being locked up in Guantanamo Bay.

Former Leicester University student Jamal Kiyemba was held in Uganda following the killing of a prosecutor Joan Kagezi.

He was one of several people held over the murder by counter-terrorism officers in the African country, which has been target by the al-Shabaab terror group.

Kagezi was shot dead a day before a trial was to be held that involved a group of men who were accused of being involved with bombings.

Islam convert Kiyemba - whose nickname is Tony - was awarded compensation by the government for his time spent in confinement at the United States terror prison.

He had been granted indefinite leave to stay in Britain as a youngster and studied pharmacy but later travelled to Pakistan where he was captured and detained in Guantanamo Bay.

While there, he declared he was British to a human rights lawyer, insisting: "I may not be British according to some bit of paper but in reality I am a Brit and always will be." Despite that, he never applied for citizenship, reported the Mirror.

Kiyemba claimed he was tortured into confessing to terror crimes while in Guantanamo and that he was interrogated by MI5 about British fanatics including Abu Hamza.