The UN court ordered the immediate release of Fr Nsengimana, who was a priest at a Catholic secondary school, Reuters reports.
"The Chamber did not find a sufficient factual and legal basis for concluding that Nsengimana was guilty of any of the crimes," the tribunal said.
The prosecution had said Nsengimana was at the centre of a group of Hutu extremists that planned and carried out targeted attacks and participated directly in killings.
Nsengimana has been in prison since his arrest in Cameroon in 2002.
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