The Anti-Terrorism Police have not commented on the arrest.
The sheikh was also arrested in 2014 at the Coast over suspicion of radicalising the youth, and was later released. It was alleged that he had links to radical groups.
Two people died from injuries sustained in the chaos, confirmed Marsabit Referral Hospital Chief Officer Abshiro Hapicha on Saturday evening.
He added that there were 19 people seeking treatment at the hospital, 13 of whom had bullet wounds.
The Nation had visited the hospital in the afternoon and counted 11 injured.
A police source also said that Turbi OCPD Samuel Mukuusi was roughed up by protesters and plans were underway to airlift him to Meru for specialised treatment.
Six people who were seriously injured have also been referred to Meru Level 5 Hospital for surgery.
On Saturday, police said the sheikh is linked to a network that recruits youths on behalf of Al-Shabaab.
Sheikh Gorsa was named by suspects who are facing terror charges at a Nairobi court, according to a police source who spoke to the Nation.
“The suspect recruited the youths who were recently arrested on their way to join Al-Shabaab in Somalia. The youths who were charged in a Nairobi court made confessions and named him as the one who radicalised them before sending them to Somalia,” the source added.
The source requested anonymity, saying the situation in Marsabit was still sensitive and volatile.
Additional reporting by Fred Mukinda.