The first bunch of hostels will be built nearby Strathmore, USIU-Africa and Daystar.
Previously, it was extremely hard to find land being advertised in Muthaiga.
The firm has acquired land worth Sh10 billion to facilitate its property development initiatives.
The use of locally available materials such as mangrove timber will help cut building costs.
Leakey has obtained Sh300m from Tullow and other oil prospectors in Turkana.
The insurer is building 11 floors of furnished and serviced apartments in Kilimani, Nairobi.
The Sh6.2 billion facility will offer a floor space of 50,000 square metres in three units.
A 100 feet by 50 feet plot is currently going for at least Sh10m up from Sh4m in 2015.
Investors are building more high-end warehouses to meet rising demand.
RiverRun Estates offers residents an easy access to Tatu City and Migaa Golf Course.