This is the single biggest number of suspects to be killed at a go in recent years.
The men were mowed down by police bullets after they were reportedly found stealing machinery from a store.
Police said they shot dead eight men at the scene while four others managed to escape on foot.
A lorry with the said stolen machinery was recovered at the scene.
Police say they also recovered two homemade pistols and machetes from the men in the incident. An alarm had been raised over the robbery, hence, alerting police who were on patrol.
The team that responded said they were attacked first prompting them to fire back and fatally injured the eight.
The incident happened outside Sihra Coffee Machinery Service and Gensham Wood Enterprises godowns.
According to police, the group had already broken into the premises.
Senior officers visited the scene later on after learning about the number of people killed.
All were young men in their late 20s, witnesses said.
The bodies were moved to the mortuary.
Nairobi police boss Rashid Yakub said they are investigating the incident and trying to get those who escaped for questioning.
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