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Housing minister Gavin Barwell visited a £14.4 million housing development at Kitchener Barracks in Chatham.
The historic barracks will be converted into 72 flats and 94 homes and a further 101 flats will also be built on the site.
The government’s Homes and Communities Agency (HCA) has awarded £14.4 million to developers Latis through the Home Building Fund to boost construction on the site.
Plans to build a housing estate on the site were approved in April 2015.
Paul Kitson, HCA general manager for the South East, said: “I am delighted that the HCA has been able to support Latis in developing this landmark site.
"This will provide much-needed homes that otherwise might not have happened, and is part of the HCA’s ongoing commitment to the Medway area.”
Construction at the site is expected to start this year and is thought to be completed by 2020.
Originally called Chatham Infantry Barracks, Kitchener was constructed in 1757 and its continuous military use since then makes it one of the oldest such sites nationally.
The site became known as Kitchener Barracks in 1928, and was used as accommodation by the Royal School of Military Engineering until June 2014.