The decision was made after one witness declined to testify and another admitted lying about a critical event, prosecutor Fatou Bensouda said in a statement released Thursday by the International Criminal Court.
"Having carefully considered my evidence and the impact of the two withdrawals, I have come to the conclusion that currently the case against Mr. Kenyatta does not satisfy the high evidentiary standards required at trial," Bensouda said.
Kenyatta's trial was scheduled to begin in February, CNN reported. He was charged with funding a militia to conduct reprisal attacks during violence that erupted following the 2007 elections.
More than 1,000 people died and hundreds of thousands were displaced.
The trial of Kenyatta's deputy, William Ruto, on similar charges began in September.