President William Ruto has toured Mukuru to inspect the progress of the 14,000 house units.
Ruto was accompanied by PS State Department for Housing and Urban Development Charles Hinga.
During the tour, Ruto said the affordable housing project is already on course.
He said the project has created job opportunities for the youths struggling to earn a living.
"Besides addressing the housing gap faced by the growing urban low-income population, this progressive project also presents huge opportunities for gainful employment to millions of our youth struggling to earn a living and entrepreneurs," Ruto said.
The President noted that 70,000 units are at advanced stages of construction across the country.
The project is located on a 55-acre land belonging to the Kenya Meteorological Department that was grabbed 24 years ago but the Ethics and Anti-Corruption Commission recovered the land worth more than Sh5 billion.
Justice Elijah Obaga of the Environment and Lands Court ordered the cancellation of title deeds issued to five companies for the land and ordered the firms barred from trespassing.
Recovery proceedings commenced in 2009, and it took the EACC 11 years to recover the land that was grabbed in 1997.
The site will have five blocks of residents, a fire station, a shopping centre and a kindergarten.