Business travellers prefer to stay at serviced apartments, which are cheaper than hotels.
The initiative will bring into the market thousands of new homes for as little as Sh500,000.
The government has set aside 7,500 acres for construction of low cost houses.
Analysts expect real estate investment in Kenya to pick up in the coming months.
Milost will spend Sh15 billion to buy a stake in Kings Property Pride.
The building located in Huruma in eastern Nairobi collapsed on Sunday.
Kenya is the top African investment destination for HNWIs.
Tata Value Homes planned to establish green townships near major cities countrywide.
Interest rates capping law is said to be a major impediment to home ownership.
Penthouses are highly sought after due to their privacy and panoramic views of the city.
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.