The Kenyan capital Nairobi's status as an economic and infrastructure powerhouse in East Africa was given a boost on Wednesday with the construction of the region's largest and most expensive shopping mall commissioned.

Garden City, to be based along the newly constructed Thika Superhighway, is Nairobi's flagship retail, residential and commercial property development.

"This project sets the standards for other mega property developers, and I know there are many waiting, to follow," said Evans Kidero, the governor of Nairobi County, when he commissioned the construction.

The mall is being developed by private equity company, Actis, which has several other shopping malls in Nairobi, but none is bigger than the Garden City once it is completed.

The mall will house a 50,000-square-meter retail center, over 420 apartments and town houses, commercial offices and a stunning three acre central park open to all. It is being built on a 32- acre-piece of land.

Kidero said his administration will give land to investors who are ready to develop properties like Garden City that have high impact to the welfare of the city and the country at large.

"We have told investors who were allocated land and have not developed it that we shall reposes it and give it to deserving investors who are ready to commence development," he said.

The Garden City project has been recognized as a flagship project of Kenya Vision 2030, a development blue print that seeks to transform Kenya into a middle income status country by the year 2030.

The project will help address the housing shortage that has hit Kenya and especially Nairobi. But will only address the housing needs of the high income earners because based on its location, about 10 km from the city center, prices are likely to be high.

At the adjacent residential estate, cost of a four bed roomed house is retailing at 235,000 US dollars, a cost that is out of reach for majority of Kenyans.

The first phase of development, opening for business in late 2014, will bring 33,000 square meters of prime retail space to the city.

Garden City will be home to over 100 major local and international retail brands, many of them opening their flagship stores in Kenya for the first time.

Stores like Kenya's Nakumatt and South Africa's Game have already signed up as the anchor tenants. In this initial phase the developers will also make 80 desirable residential apartments and houses available for purchase.

Speaking at the ground breaking ceremony, Michael Turner, managing director of Actis East Africa, said Garden City will become a major hub for the northern Nairobi catchment area, which currently has no modern retail, office or leisure facilities.

Garden City will also be the first LEED (Leadership in Energy and Environmental Design) certified retail mall in East Africa, translating into lower water and electricity bills for tenants and residents, he said.

Its power source will be a 1megawatt solar power generation plant that will be built on the roof of the facility.