The 34-year-old player, who has suffered a dip in form with his batting scoring only 14 runs in seven one-day internationals since April, is set to join Caboolture sports club until April 2007.
It will be his second stint in the country having played for another Australian district team, Frankstone in Melbourne in 2005.
"I am looking forward for the challenge of the Australian cricket," said Otieno before his departure on Tuesday. "I hope my playing there will improve my cricket."
Otieno voiced willingness to return and play for Kenya if he is selected for the World Cup in March 2007.