The factory has a capacity to produce 126,720 expanded polystyrene panels (EPS) panels a year.
Interlocking blocks are made using a soil block press machine.
The Kenya VAT Act 2013 has brought about a new construction materials pricing regime.
The system will enable the firm to locate where counterfeiting is taking place.
Kenya ranked highest among East African countries followed by Ethiopia and Tanzania.
The shilling has lost 28pc of its value since January, battered by double-digit inflation.
It has emerged that some of the materials in the market are sub-standard.
The rising costs have been associated with the high global oil and steel prices.
Basco is now the exclusive distributor of Ennis Prismo road marking paint in Kenya.
Low cost panels and building blocks will boost affordable housing in Kenya.