The barrage also injured 15 when it hit fighters at a training camp near the rebel stronghold town of Laiza, a spokesman for group said, in the largest attack in recent months in a conflict that has uprooted tens of thousands of people and tempered optimism over political reforms.
"It's the biggest loss for us in a single attack, compared with the fighting in recent years," La Nan, of the Kachin Independence Army (KIA), told AFP.
But talks to end the country's multiple conflicts in ethnic minority border areas have so far ended in frustration.
The government has inked ceasefires with 14 of the 16 major armed ethnic groups, but deals with the KIA and Ta'ang National Liberation Army (TNLA) in eastern Shan state have proved elusive.
The last round of meetings in late September ended without resolution, with fighting ongoing in Kachin and clashes flaring in a number of eastern border regions.
Peace negotiator Hla Maung Shwe, at the Yangon-based Myanmar Peace Centre, said he had been informed of the attack and the group had sent information to the government.
"We are trying to reduce this kind of fighting," he said.
Another round of ceasefire talks is expected to be held next week, he added.
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