The Star named the suspect as Patrick Muriuki.
He was allegedly spotted by street children at around Kamukunji area when he tried to dispose the body from a handcart. Police believe that the woman was murdered elsewhere. The man's accomplice escaped after the street children caught them.
The children detained Muriuki and called the police who say the suspect will be held to help with further investigations.
The woman has since been identified and the probe is set to unearth the motive of her killers.
News24 spoke to Nairobi Police chief Japheth Koome who confirmed the incident.
" We are currently taking investigations and will comment further on the matter soon," he stated.
The body was taken to the Nairobi City Mortuary.