Kenyan security officers have been deployed to Dusit Hotel in Westlands, Nairobi following a blast and gunshots in the area on Tuesday afternoon.
Police say an elite team Recce squad has been dispatched.
It was not immediately clear whether the incident was a robbery or an attack.
What we know so far
Smoke could be seen from cars burning outside the Dusit building.
Some of the people in the nearby buildings told the Nation that they are holed up in their offices.
Police have warned people to stay away from the area near Dusit Hotel as they respond to the reports on gunshot and explosion.
Surrounding buildings have been evacuated with armed plain-clothed and uniformed officers on guard.
- Heavy gunfire can still be heard coming from the DusitD2 Hotel.
- A Kenya Air Force helicopter is hovering over the building as security officers evacuate people from the hotel.
The gunshots and explosion were reported at around 3:15pm. People said they heard a loud bang, then gunshots rent the air.
The incident happened on 14 Riverside, the compound that houses Dusitd2 Hotel and the Commission on Revenue Allocation.
"Police wish to confirm that there has been an attack incident along 14 Riverside Drive. The area has since been cordoned off and motorists are advised to use alternative routes to facilitate smooth operations of the Police," the National Police Service Commission said in a tweet.