The homes, costing Sh1m for a two-bedroom unit, will be built on 1,000 acres in Athi River.
Asian investors are planning to build a Sh65bn city in Athi River.
The factory can produce 126,720 expanded polystyrene panels (EPS) panels a year.
Construction of the Tazara Flyover commenced in 2016 and was completed in 29 months.
The Kenya VAT Act 2013 has brought about a new construction materials pricing regime.
The partnership seeks to build a competent workforce.
The museum will be complemented by a rooftop garden with a viewing deck.
Development comprises 81 residential houses, of which 20 were completed in phase one.
The luxury homes are centred around waterholes and salt licks.
The plant will have a 40MW installed capacity.