"So far we have been informed that there was a shooting incident on Riverside around the Dusit hotel," Kenyan police spokesman Charles Owino said. "We have sent in a number of teams from the anti-terror unit and CID to give support to what is going."
"We have to assume that this is the highest possible type incident, so we are prepared," he added.
Dusit hotel is located on Riverside Drive in Nairobi's affluent Westlands neighborhood.
Footage on local television showed smoke rising from the area.
This story is developing...
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