A policeman stands guard at the scene of the attack in Diani/CFM News
The grenade was thrown into the Tandoori Bar at about 3am by attackers who fled on a motorbike, according to police.
“We had an explosion at the bar and about 10 people were injured,” area police chief Jack Ekakuro said.
There was no immediate claim of responsibility for the attack.
Authorities later said they had intensified security following the incident.
Kwale County Commissioner Evans Achoki said police were on a high alert and had intensified patrols in the South Coast.
He pointed out that decisive action would be taken against those behind the radicalisation of Muslim youths believed to be behind runaway crime at the Coast.
“We want to assure Kenyans that we have elaborate security measures that we have put in place,” the County Commissioner said.
“There were approximately 200 people in this club but the ordinance landed where there were few people. So far we have 10 casualties that are undergoing treatment at Msambweni Hospital,” Achoki said.
A team of anti-terrorism police officers visited the scene and collected crucial evidence to assist in the investigation.
The incident comes in the wake of increased cases of radicalization of Muslim youths in the coastal region.
Since Kenyan troops invaded southern Somalia in October 2011 to help oust the neighbouring country’s Al-Qaeda-linked Shabaab insurgents, it has been hit by a series of attacks.
Last month, attackers hurled a grenade at British tourists as they drove from Diani to the main port city of Mombasa, but it failed to explode.
Homegrown groups including the Islamist Al-Hijra group, a radical organisation formerly known as the Muslim Youth Centre, operate on Kenya’s coast and have been linked to the Shabaab.
The Shabaab claimed the brutal September assault on Nairobi’s upmarket Westgate mall in which at least 67 people died in a four-day siege of the shopping centre popular with foreigners.
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