The government has cautioned Kenyans against dealing with people claiming to be in a position to allocate them houses in the affordable housing programme's Park Road project at a fee.
Housing secretary Patrick Bucha said the department has been alerted of the scam and had reported the matter at Pangani Police Station.
"Those who have fallen prey to this fraud are requested to report to the nearest police station," Mr Bucha said Tuesday.
"The State Department for Housing and Urban Development notifies Kenyans that when the houses are ready the government will inform them, especially those who have registered in the Boma Yangu portal (www.bomayangu.go.ke)."
Mr Bucha said the department would continue to update the public on the progress made in the affordable housing plan.
The Boma Yangu project on Park Road, Nairobi, is the first in President Uhuru Kenyatta's Big Four Agenda.
The High Court has extended orders barring the government from implementing the 1.5 per cent housing levy until May 27.
The order was issued on Monday to allow for the consolidation of cases filed against the plan.
The State plans to take 1.5 per cent of workers' gross salary to set up a housing fund.