The Sh2 billion project has not been completed since May 2012.
The man was hacked to death on Friday at dawn after refusing demands by raiders.
Kura has advertised for a consultant to prepare a plan to ease traffic jams on city roads.
Churches are aggressively pouring billions of shillings into Kenya's property sector.
The houses will be built using panels made from compressed rice and wheat husks.
The houses in the first phase will be sold to civil servants.
Prefabs reduce the time taken to build a house while lowering costs by up to 30 per cent.
Introduction of evaluation fee is already facing fierce opposition from Nairobi residents.
Local firms did not meet the financial threshold set by the government.
Most Kenyans acquiring houses are not doing so for speculative intentions.