A senior police official told Xinhua at the scene that a car laden with explosives detonated outside the Blue Sky Restaurant which is located near a prison run by the National Intelligence and Security Agency.
A witness said that a huge explosion was heard followed by a large plume of smoke rising from the area.
No group immediately claimed responsibility for the attack, but Somalia's Islamist militant group Al-Shabaab often carries out similar attacks in the country.
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