So fine there are four existing communities with Nekos living in them. Three of them long before I created Kyousou. So I'll take the same stand as the others and just say neko's live there, but not give a status.
Kawakyo (750,000) The city is a test project to house retiring Nekovalkyrja, and was set up with them in mind.
Port Xenn (150,000) It's one of the most diverse cities on Yamatai, hosting Nepleslian, Geshrin, Yamataians, Nekovalkyrja and even Nepleslian mutants.
Gemis (5,000) Some Nekovalkyrja have begun to populate it, carving a living out of the ice.
Kyousou (15,000) Approximately 15 percent of its population are retired Nekovalkyrja.
And not all Neko's are military. "NH-29s naturally born as younglings to NH-29 mothers are allowed to keep their bodies but if they keep them they are eligible to be subject to a military draft in wartime." There has been no draft, and with billions of Neko having been made. There would be plenty on born Neko's running around. 0.5% of just one billion would mean 5,000,000 civilians.