Luqman had in the past evaded several police dragnets within Majengo and Old Town.
Regional CID boss Henry Ondiek said police officers acting on intelligence information ambushed the two and seized several weapons (swords), drugs and a military jacket.
Ondiek said a police officer was stabbed in the hand during arrest when they raided their hideout within Majengo.
He said the two are being investigated over terrorism and other criminal activities where innocent people have been stabbed and later robbed of valuables within the Coastal City.
According to police Luqman is a close ally of Mohammed Soshi aka Ismael Mmanga, Mahir Khalid Riziki, Hamisi Mwacheti aka Rasta aka Bilal and Abubakar Majani members of Al Shabaab Jeysh Ayman group.
Soshi is believed to be behind the recent killing of police a officer guarding a bank within Bondeni area before he allegedly snatched his G-3 rifle.
Ondiek said Soshi is known for dressing up in a buibui while conducting his illegal activities to easily evade police arrest.