There was heavy gunfire between the Kenya security personnel and suspected Al-Shabaab militants on Monday night in Fino in Mandera County.
One Police reservist was killed in the clash with the suspected militants.
Fino MCA Saad Sheikh said the reservists came face to face with the group while on an operation in Dawaduba.
"The reservists were responding to reports of the presence of Al-Shabaab in the area when the incident occurred after evening prayers," he said.
The militants are reported to have arrived in village two days ago, raising tension in the area.
On Saturday, police escorting buses along the Mandera-Rhamu-Elwak road escaped death narrowly after an explosive planted on the road missed its target.
Senior security officers led by Mandera County Commissioner Kutswa Oloka are in a meeting Tuesday morning and are yet to speak about the incident.
But unconfirmed reports say five members of the terror group have succumbed to gunshots injuries and that police have recovered a gun belonging to the militants.
Increased movements of Al-Shabaab militants are on the raise in areas bordering Somalia.