Most prospective buyers have not been remitting any monthly contributions.
The Sh1.9 billion 'village' project was launched in March 2014.
Controversial rent control ideas are emerging across major cities.
HFDI will quit construction business later this year after completing ongoing projects.
These facilities allow businesses the opportunity to operate inexpensively in a prime address.
The government was seeking to raise Sh57 billion annually from 2.5 million workers.
The Konza-Isinya transmission line is funded by China Exim Bank.
Each of the two-bedroom houses under phase one of the project will be sold at Sh3 million.
The 219 km highway, which will be built in two segments, was scheduled to begin in July.
The project is part of the Kenya Ports Authority's Sh310 billion ports investment program.
Talks are underway for China to fund a new highway and rail extension.
The Chinese-funded Orpower 22 power plant will take 17 months to complete.
Bedsitters will rent for Sh3,200 per month on a 30-year rent-to-own plan.