Two Indians Among 68 Killed, Kenya Hostage Crisis Continues

"The situation remains delicate but we are leaving nothing to chance to ensure the culprits do not go unpunished while at that the same time trying to save as many innocent lives as possible", said Kenya's security minister Joseph Ole Lenku.

With hundreds still trapped in the ill-fated facility, inspector general of police Joseph Kimaiyo promised police units and the army were up to the task and would ensure civilians held hostage were rescued.

Israeli forces joined the hunt for the attackers Sunday with sporadic gunfire being heard all day.

The Al Qaeda-allied militia have claimed responsibility for the attack while warning that more attacks would follow unless Kenya withdrew its troops from Somalia.

Kenya has stepped up security in shopping malls around the country while increasing security presence in all public spaces.

The incident has attracted condemnation from around the world with US and British governments saying they would offer Kenya any help needed to end the siege and punish the attackers.

"Kenya will not agree to be intimidated by cowardly terror groups out to kill and harm innocent people" said Kenyatta in a message to the nation.

The African Union (AU) strongly condemned the attack, vowing to counter terrorism throughout the continent.

The incident is the third terror act in Kenya with the first in 1998 when over 190 people died in an attack on the US embassy in Nairobi. In the second attack on an Israeli mission in the resort city of Mombasa near the Indian Ocean, 38 lives were lost.