Mombasa Governor Hassan Joho has been given a green light to continue with a proposed housing project.
This is after a Mombasa High court declined to halt the construction of Sh90 billion housing project.
The project is set to replace 10 old estates within the county.
The civil societies in Mombasa had moved to court seeking orders to block the project after accusing Joho of not consulting with tenants before going ahead with the project's implementation.
Justice Njoki Mwangi called on the parties to try and solve the matter out of court.
"Some issues the parties are asking can be settled by out of court settlement," said Mwangi.
The Joho regime plans to put up modern housing at Likoni, Khadija, Changamwe, Buxton among other estates.
Elsewhere 700 tenants from the affected estates have applied to be enjoined in the matter stating that they were also opposed to the project.
Their application will be heard on September 22, 2016.