Our Correspondent in the coastal city says the youths started demonstrating soon after the lunchtime prayers have also torched Salvation Army Church in Majengo.
At least one youth has been shot in the stomach, and tension is reported to be high as police try to contain the angry youths.
The Muslim cleric killed in Thursday night shooting had been preaching at a mosque in Majengo area where slain cleric Aboud Rogo used to preach before he was killed last year.
Salim Abdi who survived the shooting said he just heard gun shots before the vehicle lost control and landed in the ditch, only to realize all his four colleagues have been killed.
Locals have accused the police of killing them as part of the war against terrorism although police have denied the claims.