Nairobi: At least 27 people were killed and several injured after Al-Shabaab militants burnt down hotels and a police station in the coastal town of Mpeketoni in eastern Kenya Sunday night, police confirmed on Monday.

A police source said that rescue was still underway in the busy town, where bars and cafes were packed with fans watching FIFA World Cup, Xinhua reported.

Earlier, an official said that more than 50 masked gunmen descended on the busy town and shot villagers, and torched several houses and buildings including a bank.

The official said the attackers also took away some civilian and police vehicles before setting a police camp on fire.

Eyewitnesses said they saw four bodies lying on the street and residents fleeing the trading centre on the main coastal road amid sporadic shootings between police and the militants.

A military spokesman confirmed the attack and blamed the Somali insurgents behind the latest attacks in the coastal town, which had been previously hit by bandits.

At around 8:00 p.m, the gunmen allegedly belonging to al-Shabaab entered Mpeketoni in two Nissan vans and started shooting people around in the town.