The county government has given developers until December this year to comply with planning regulations before enforcement measures.
According to court documents, the prime 54-acre land was initially owned by the late Transport Minister John Michuki.
Deputy President Kithure Kindiki has told Gikomba traders to remain patient, saying the government has a plan to relocate them to safer, modern facilities.
President William Ruto has pushed back against criticism over the eviction of traders from Gikomba Market ahead of a planned multi-billion-shilling modernisation programme.
Many traders said they had not expected the demolitions to happen at night and expressed frustration over what they described as abrupt action.
President Ruto unveiled plans for a Sh3 billion ultra-modern Gikomba market hours after overnight demolitions, sparking mixed reactions from traders and Kenyans online.