One person died on Saturday after she reportedly collapsed as her house was being demolished by a developer Kadzuhoni, Magarini constituency, Kilifi.
More than 3,000 residents spent the night in the cold after the tycoon won a court case and executed the orders to claim over 339 acres.
The person reportedly died in hospital.
The tycoon, accompanied by a contingent of heavily armed security officials and graders with court orders, stormed the property at 6am.
Residents watched in shock and disbelief as the only place they called home was brought down under heavy supervision of the police.
Kilifi Governor Amason Kingi halted the demolition halfway through and said he would appeal the judgement on Monday. He called it illegal.
The developer has said he will provide alternative land and has always been willing to negotiate. The vacate deadline was first 45 days, then it was extended by 49 days.
Several people, including Gongoni MCA Albert Kiraga, were arrested in the early morning for allegedly inciting residents to cause violence. They were later released.
The operation was led by Kilifi county commander Patrick Okeri together with the representatives of the landowner.
Some were seated outside the remains of their houses while others were salvaging what was left.
Kadzhuhoni Primary School was partly demolished.
Attempts to disrupt the demolition, including with burning tyres, were quickly halted by police.
Residents who spoke to the Star said the developer won a court case and was declared the rightful owner of the land.
They asked why they were evicted without being given alternative land.
Residents said they have been left homeless didn't know their next move.
Pastor John Sulubu said the tycoon had a case with non-locals, asking "why he battled with dead people".
"The tycoon sued people who are not locals that's why they did not go to court."
Evictee Rehema Kaingu Ndorosaid all her properties had been brought down by bulldozers.
"I have nowhere to stay, my two houses are all gone," she said.
The developer's representative Sheikh Noor Mohamed said they were executing court orders after a ruling in their favour.
They have not demolished any church, mosque or school, he said, adding that the smaller part of the school which was demolished was "by bad luck and had been stopped".
He said that since the beginning the developer has been willing to give e residents land so they can get documents.
"We have tried to resolve this matter but every time we fail to agree. We still open for negotiations to ensure the residents are allocated land and get title deeds," he said.
Kilifi GovernorKingi, Magarini MP Michael Kingi, MCA Kiraga and a host of Kilifi MCAs visited the area athe demolition was stoped halfway.
Governor Kingi condemned the act, saying he would not negotiate with the tycoon "as they acquired the land illegally".
"The tycoon has no genuine title deed because the transfer process was unlawful, the evidence residents wanted to use in court was denied," he said.
MP Kingi said the county government would supply tents and relief food to the affected people and vowed not to let any tycoon take over the land.
The Magarini MP said he was not consulted on the demolition. He expressed shock that the tycoon demolished part of a school.
He called on the Education ministry to be enjoined as interested parties and said the real owners should also come on board, instead of sending representatives.
Edited by R.Wamochie