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The former Kemsley Arms pub will be transformed into flats and shops.
Swale council’s planning committee agreed the application for the redevelopment when members met last month.
The watering hole in Ridham Avenue shut its doors to the public in May 2013.
It then operated as an Indian restaurant under the same owner until April last year.
Prior to the application being approved, Cllr Mike Baldock (Ukip) said he would have liked the conditions to demand that part of the development would remain open as a pub.
He said: “I think there is a real need for a pub in that area. You’ve got a new housing estate at the back; you’ve got a lot of people who have lived there a long time that used to use that pub.”
But Cllr Mark Ellen (Lab) disagreed, saying: “We’ve seen it across the borough, we’ve seen it across the country, pubs are closing down.
“Social entertainment is changing. People don’t go to pubs like they used to anymore. It’s a great place for flats, so I will go along with this one.”
Cllr Mike Henderson (Ind) added: “I think it’s worth applauding the fact we have 33% affordable housing in this development.”
As part of the section 106, the developer must also contribute £2,612 towards wheelie bins and pay £949.89 towards a council-standard monitoring charge to measure compliance with the agreement.
Officers were also given permission to sort out minor errors within the application.
Ward member Cllr Sue Gent (Con) said: “It’s been a long time coming but when it comes it will make it a proper little village back as it used to be.”
It is subject to an extra condition that the window sills at the back of the building are at least 1.65m above floor level so people can’t look out of them. They are purely to provide light and ventilation.
There was laughter when Cllr Andy Booth (Con) questioned the height.
“I’m not sure how many people are less than 1.65m (5ft 5in) tall,” he said.
Area planning officer Jim Wilson said: “I’m happy to be corrected by colleagues but I believe that’s the height we use. There seems to be a suggestion it might 1.7m (5ft 7in) though.”
Cllr Booth added: “We have two members who may be able to see out of that window Mr Chairman.”
Mr Wilson replied: “That’s the government standard but I’m sure people are getting taller all the time. I’m happy to investigate.”