Africa Integras will build and operate the 10,000-capacity hostel for 20 years.
This follows the completion of phase one of the Two Rivers Mall.
The facility opened its doors to the public on February 14, 2017.
The mall is set on a 4.5-acre piece of land in the Rosslyn suburb on Limuru Road.
From April 1, builders will only be allowed to use ribbed steel bars.
Light gauge steel structures save developers up to 20 per cent of the construction cost.
Kenya lacks consistent green building standards and guidelines for developers to follow.
High rise apartments have proved to be the most efficient way to maximise land use.
Developers who put up at least 400 low cost homes will pay 20pc corporate tax.
Kenya Railways plans to build office blocks and malls on 320 acres currently idle.