Close to 500 families were left homeless in Mukuru kwa Njenga when a fire burnt down their houses on Saturday night.
Residents said the fire started at 9pm and razed their houses in less than one hour before.
They then demolished houses ahead of the fire to stop it from spreading further.
No death was reported in the incident, but a man suffered a broken arm after he was hit with a piece of wood by another during demolitions to create the buffer.
The residents said they had hard time salvaging property from their houses, as power was disconnected, leaving them in darkness.
Burglars also took advantage of the commotion to loot houses of the affected and carted away the little the residents salvaged.