Several people are believed to have been wounded, reports
say. TV pictures showed a fire raging in a badly damaged building. The
blast's cause is unknown.
A Red Cross disaster response team has been sent to the scene of the explosion at one of the shops on Moi Avenue.
There have been several blasts in Kenya since it sent troops
into Somalia last year to tackle the al-Shabab Islamist militant group.
Al-Shabab has repeatedly threatened to stage revenge attacks against Kenya.
The BBC's Kevin Mwachiro says glass and clothes from the small shops inside the building have been scattered across the street.
TV pictures are showing people pouring into the streets from
nearby buildings to get away from the scene of the fire, the AP news
agency reports.
Moi Avenue is a major road which would have been busy during the lunch hour, AP says.
According to an eyewitness, there was a huge blast and debris
flew in different directions injuring people in the vicinity, the
Nation newspaper reports.
The powerful explosion shook buildings in the surrounding area and the evacuation process began, the Nation says.
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