At least two people were killed in an attack by al Shabaab militants in the Milhoi area, Lamu County.
The terrorists also burnt two vehicles- a canter and pick up as they fled the scene of the attack, police said.
The incident happened on Tuesday after the gang raided the village.
They first killed two people who officials said were a driver and his turn boy before they fled the area.
Officials said the gang had been harassing farmers in the village when an alarm was raised.
Police said while on the run they ambushed vehicles.
It was then they set on fire two of them near the Bagdam Bridge.
Witnesses said at least ten assailants waylaid a vehicle transporting liquor from Mombasa to Lamu, forcing the driver and his turnboy out before executing them.
The gang fled into the adjacent forest.
A major operation was launched by security officials in the area to hunt down the terrorists, acting County Commissioner Charles Kitheka said.
Kenyan security officials have been on alert following reports the gang planned attacks at undisclosed places.
Lamu is among the areas suffering from frequent attacks from the militants.
This is among others because of its proximity to the Kenya-Somalia border.
The terrorists cross the border and attack before dashing into the expansive Boni Forest.
More police officers were deployed to the area to pursue the attackers who were believed to be hiding in the nearby forest.
This is the latest attack in the area even as officials link the trend to land disputes in the fertile stretch.
The attacks have left many dead and displaced hence affecting development.
Police said Sunday they were pursuing the attackers believed to be remnants of the al Shabaab terror group in the nearby expansive Boni Forest.
The area is near the Kenya-Somalia border where the terrorists cross at will for attacks before retreating to their areas of control.
Kenya has been staging operations to tame their activities.
Somalia has not had a stable government to help in addressing such attacks.
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