Onyango Obama, 67, narrowly avoided crashing his 4x4 into a police car while over the legal limit, prosecutors claimed.
He is a long-lost relative of the President and had moved to America in the 1960s, The Times revealed.
After he appeared on the drunk-driving charge, a judge ordered that Mr Obama must be remanded in custody because there is an outstanding warrant for his arrest as he is an illegal immigrant.
The whereabouts of the Kenyan was unknown - although it had been thought he was living in Massachusetts where he was arrested.
The President wrote in his book Dreams from My Father in 1995 that Onyango Obama was 'the uncle who left for America 25 years ago and had never come back'.
Police Officer Val Krishtal arrested the suspect after he nearly hit his Mitsubishi SUV patrol car on August 24, Framingham District Court, in Massachusetts, was told.
The officer and another driver both slammed on their brakes after Mr Obama went through a stop sign, the judge was told.
Mr Obama said he did not believe the police car had stopped suddenly because he did not hear a squeal from the tyres.
After being arrested outside Chicken Bone Saloon, in Framingham, at 7.10pm local time on August 24 he was breathalysed by police and had blood alcohol of 0.14mg per 100ml. The legal limit in the state is 0.08mg. Read More