"Hostage numbers still unknown, but they are in several locations. No communication as yet. Upper levels (of the mall) have been secured," the government's National Disaster Operation Centre said in a situation update posted on Twitter.
An AFP correspondent at the scene said operations by security forces were continuing, 17 hours after the attack began and as dawn approached in the Kenyan capital.
Somalia's Al Qaeda-linked Shebab rebels have claimed responsibility for the attack, which Kenyan President Uhuru Kenyatta said had left 39 dead and 150 more wounded.
"Our teams are there, we are watching and monitoring, we will finish this as soon as we can.
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