The explosion ignited a “huge ball of fire that spread widely”, government spokesperson Isaac Maigua Mwaura said on Friday.
“Consequently, the inferno further damaged several vehicles and commercial properties, including many small and medium sized businesses,” he posted on X, adding that “residential houses in the [neighbourhood] also caught fire, with a good number of residents still inside as it was late at night”.
Earlier, the Kenyan Red Cross had reported nearly 300 injured.
The fire broke out on Thursday night in the Embakasi neighbourhood southeast of the capital.
Police cordoned off the affected area, but some people could be seen collecting their belongings and surveying the damage. Firefighters were still working to control the blaze.
“The scene has now been secured and a command [centre] is now in place to help coordinate rescue operations and other intervention efforts,” said Mwaura.