SOMALIAN Islamist militants have retreated from their stronghold of Kismayo, following an attack by African Union and Somali Government troops.

Kenyan and Somali forces launched an assault on al-Shabaab's last major bastion on Friday in what was seen as a major blow to the al-Qaeda-linked rebels.

However, al-Shabaab spokesman Ali Mohamud Rage called it a "tactical retreat" and insisted "the enemies have not entered the town".

Kenyan military spokesman Col Cyrus Oguna said AU forces had control of northern parts of the city.

■somalia