He had been charged with money laundering, tax evasion and leading organized crime.
Mr. Kabendera’s release comes after he entered into a plea-bargain agreement with the prosecution.
His detention was seen as an example of rising repression against the press and critics of Tanzania’s President John Magufuli who came into office in 2015.
Rights group Amnesty International celebrated Mr. Kabendera’s release but added that there had been “no justice” for him.
“Tanzania must publicly commit to ensuring that everyone can freely exercise all their human rights and stop the politically motivated persecution of dissidents and journalists like Erick Kabendera,” a statement from the organization said.