Jubaland deputy police chief Mohamed Nasi Guled said the attackers stormed the Tawakal Hotel located in Kismayo town with a vehicle laden with explosives, sparking an exchange of fire between the militants and security forces.

Guled, who did not confirm the number of casualties, appealed for calm, saying security forces would soon restore order at the hotel frequented by the government and politicians.

"We will shortly deal with the terrorists who are three in number," he told journalists, noting that students are among the casualties.

Al-Shabab terror group which is fighting to overthrow the internationally-backed government claimed responsibility for the attack on the heavily guarded hotel.