The proposed Kilifi Proximity Point City of Return, to be constructed by 3,000 Kenyans living in the diaspora, will cost billions of shillings.
The city will be established on 40,000 acres in Magarini, according to diaspora community officials.
The city will comprise residential houses, agricultural land, a hospital, an industrial park, an innovation centre, entertainment areas, an airstrip, a conservancy, a research university and commercial spaces.
The project is expected to be completed in 10 years.
The diaspora members are waiting for government approval to begin construction work for residentials.
A section of the diaspora members visited the site where they have already acquired 2,000 acres on which they have planted pineapples. The fruits are sold to supermarkets.
Proximity Point Group CEO Prof Lukas Njenga said the new city will take care of the environment, the local people, and those in the diaspora.
Speaking in Kanyumbuni, Magarini, he said they chose the area because of its economic status and the challenges residents have faced over the years.
He said their plan is to start with fruits such as pineapples, passion, mangoes and cashew nuts.
"We have started and as you can see, we are on this large pineapple plantation, this is just one small part of the many other parts that we have fully developed," he said.
Njenga said they are in negotiations with their partners to build a factory and do vacuum packing for export.
"We are also looking at our industrial park to be self-sustaining by creating engineering aspects to fabricate machinery and equipment that can be used for tilling, cultivation and packaging," he said.
Njenga said they also plan to establish a research university under the DEED Institute.
Further, he said they plan to develop a residential area starting with 20,000 units, a third of them in the form of apartments, and two-thirds in self-styled personal accommodation.
On tourism, Njenga said they have a 2,000-acre conservancy that will see wildlife being put in a protected zone.
He said the project will have an entertainment zone along the beachfront area.
"We have opportunities to work in farms, industries, innovation centre but also play on beaches and in parks. When the city is complete it will boast of being the first green city in the country where it will use solar and other non-fossil fuel vehicles," he said.
Tour operator Philemon Mwavalla said the new city project would go a long way in supporting the tourism sector, particularly agricultural tourism.
"This is the right place to support agricultural tourism, to bring tourists here and experience first-hand how these pineapples, cashew nuts and many other fruits are produced," he said.
John Muitiriri, a member of Proximity Point City of Return, said he was impressed by the organic farming model used in the city as there was a global demand for organic products.
He said the demand for organic products in the world was about $478 billion but the current production stands at $172 billion, which shows there is still a very huge gap even for the export market from Kenya to other countries.
"The Kenyan organic market is not fully exhausted. Some retailers in the past have tried to come up with organic sections but the supply was not sufficient to meet the demand," Muitiriri said.
Proximity Point Group Animal Conservancy director Maryanne Geotz, who lives in the US, said the pineapples are being bought by Naivas and that Israel has already shown interest in buying them, which shows the potential for export.
"Pineapples from here are very good. They are very sweet and they are 100 per cent organic," she said.
Wacu Ndiringu and Josephine Ndung'u, who live in the US, said they were happy to have invested in Proximity and to have come to see their investments.
Ndiringu said she has started harvesting pineapples and intends to invest more to make the city a success.
She said the aim is to bring together the diaspora community to invest in agriculture and build homes.
