More than 200,000 houses earmarked for low-income earners will be built every year.
President William Ruto said the project will create at least two million jobs.
This, he explained, will help address the unemployment crisis facing the youth, in addition to providing proper shelter for everyone.
He spoke on Tuesday in Ongata Rongai where he launched 734 apartments targeting ordinary Kenyans.
President Ruto noted that the Government identifies affordable housing as a priority “because it will make even Mama Mboga and boda boda own a house in Nairobi”.
He added that his administration will work with counties to ensure most Kenyans benefit.
The President later addressed wananchi at the Ongata Rongai Shopping Centre.