At least 10 people have been injured in a grenade attack at a Kenyan tourist resort south of the port city of Mombasa, say police.
Attackers hurled the device into the Tandoori bar in the town of Diani in the early hours of Thursday.
Police said the injured were taken to hospital and are in a stable condition.
Kenya's coast, with its sandy, white beaches, is a popular draw for tourists but has been plagued by attacks blamed on Islamist militants.
Somalia's al-Shabab group has staged several attacks in Kenya, including one on the Westgate shopping centre in September 2013, since Kenya sent troops to fight it in Somalia.
No-one has yet claimed responsibility for Thursday's attack.
Local police chief Jack Ekakuro told journalists that the Tandoori bar had been full of New Year revellers when the attack happened at 03:30 (00:30 GMT).
"Three people appeared from the other side of the road and threw a grenade at the nightclub which exploded injuring 10 people," he said. "The attackers escaped on a motorbike".
"It cannot be anything else but a terrorist attack," he went on to say.
Regional police chief Aggrey Adoli said that all those wounded were Kenyans, the AFP news agency reports.
Tourist areas have been targeted in grenade attacks before.
Two British tourists travelling between Diani and Mombasa escaped unharmed in December after a grenade thrown at their vehicle failed to explode.