Android Nexus 5 not detected for USB File transfer in Windows 7

After setting the Android phone on MTP mode in phone's Settings -> Storage -> (... menu) ->  USB computer connection,
Windows may still not show the phone under My Computer.

To fix:

• In Windows 7, go into Device Manager
• Portable Devices
• Nexus 5
• Properties -> Driver
• Update Driver
• Let it search and detect by itself

Windows should now detect the MTP device and it will pop up in My Computer.