Tatu City has received approval from the National Environment Management Authority (Nema) for the second phase of the mega estate covering 2,500 acres.
Kenya Wines Agencies is set to be the first company to develop in Tatu City's second phase, with other companies expected to follow later this year.
The new city is expanding to meet the demand for businesses, homes and social amenities.
"The approval from Nema paves the way for Tatu City to develop on its 2,500-acre second phase.
“The city's first phase, also 2,500 acres, has more than 50 businesses operating or developing, two schools open educating 3,000 students daily and more than 5,000 homes delivered or under construction," said the firm in a statement.
"Tatu City has designated part of the second phase for large-scale affordable housing."
Evans Dimba, deputy country head for Rendeavour, which is the Tatu City's owner and developer, said the approval of the Strategic Environment Assessment had paved the way for engagement with monitoring organisations such as the Kenya Wildlife Service and Kiambu County government.
"We have already commenced our multi-stakeholder engagement with monitoring bodies such as the Kenya Wildlife Service, the Water Resources Authority and the Government of Kiambu County," said Mr Dimba.
Tatu City is a Special Economic Zone totalling 5,000 acres with infrastructure for homes, offices, shops, schools, medical facilities and light industries.
Companies already operating or developing at Tatu Industrial Park include Cooper K-Brands, Dormans, Chandaria Industries, Twiga Foods, Kim-Fay, Africa Logistics Properties, Mapei, Copia, Tianlong and Stecol Corporation.