A terror attack occurred at a complex, which houses a large hotel known as DusitD2, along with several banks and offices this evening.
Police are said to have exchanged gunfire with the attackers at the scene of the operation.
At least one officer in bomb disposal gear was seen at the complex as well as an unexploded grenade in a hallway of a shopping area.
Several cars were on fire and people were carried away from the scene in the Westlands neighbourhood of Nairobi.
One survivor of the attack said he sought refuge in a fridge and that he saw at least one dead body in the grounds of the DusitD2 hotel.
Another said he saw at least two bodies. He also said the attackers were wearing green and were wrapped in ammunition.
Somali Islamist militant group Al Shabaab has since said it is behind the attack and that its fighters were still inside the complex.
Police spokesman Charles Owino said officers had been deployed to the complex, including those from the country's anti-terrorism unit.
Plainclothes officers have been seen working their way towards the scene with guns.
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