Nairobi building permit fees are said to be the highest across the continent.
The factory has a capacity to produce 126,720 expanded polystyrene panels (EPS) panels a year.
The new houses will be built using the Expanded Polystyrene (EPS) technology.
The centres will promote the use of location-specific building materials.
Development comprises 81 residential houses, of which 20 were completed in phase one.
Cement consumption was 4% higher in the first half of 2012 than a year earlier.
The contractors claim they have been locked out of lucrative contracts.
The planned gated development will be built in three phases.
The public has been asked to air their views on the draft laws.
This estate of 800 homes spans 115 acres next to Kisaju View Park Estate.