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.
Each of the two-bedroom houses under phase one of the project will be sold at Sh3 million.
Shopping malls are posting huge losses as ongoing supply glut compels landlords to cut rents.
New law orders counties to punish applicants who fail to complete projects within five years.
The retail property sector is now a renters’ market, with tenants demanding rent reductions.