Several people injured in the attack have been rushed to hospital.
Mandera South OCPD Charles Chacha said among those killed were two police officers guarding the bank when they were shot dead by unknown men.
According to the Red Cross, several people were been injured in the attack and have been rushed to Elwak Hospital.
Last month,four police officers were killed when an Improvised Explosive Device (IED) hit their Armoured Personnel Carrier in Baure, Lamu County.
In May, the Inspector-General of police Joseph Boinnet had last week warned that a number of dangerous terrorists had sneaked into the country from Somalia.