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    UPDATE 4-Kenyan police kill three suspects in al Shabaab raid

    * Three suspected al Shabaab supporters killed

    * Several police hurt, one dies of wounds

    * Insecurity at the coast harming tourism

    MOMBASA, Kenya, Oct 17 (Reuters) - Police shot dead three

    suspected supporters of the Somali militant group al Shabaab on

    Wednesday in a raid in Kenya's turbulent coastal region, in

    which a police officer also died.

    Kenya has suffered a series of grenade and gun attacks since

    it sent troops into Somalia a year ago in pursuit of the

    insurgents it blames for kidnapping security personnel and

    Western tourists from its territory.

    Grenades, AK-47 assault rifles and ammunition were also

    confiscated during the night-time operation in the run-down

    Likoni area during the operation, Coast province police chief

    Aggrey Adoli said.

    A local group campaigning for independence for the Coast

    region has added to tensions ahead of a presidential and

    parliamentary election due in March, the first since a disputed

    2007 poll that sparked inter-ethnic violence nationwide in which

    more than 1,200 people were killed and thousands more displaced.

    Adoli said the suspected al Shabaab supporters threw two

    grenades and opened fire when an elite Nairobi police unit burst

    into their building, seriously wounding four officers. One later

    died of his wounds in hospital.

    About six people were also arrested but later released after

    it was found they were neighbours caught up in the raid, he

    said.

    "With the key suspects killed and weapons recovered, the

    operation (has ended). It's still a big success in our war

    against terrorism," Adoli told Reuters.

    Mwagomba Juma, a youth leader who lives in the area, said

    heavy gunfire, punctuated by at least two blasts, began in the

    early hours of the morning.

    Dozens of police in bullet-proof vests and armed with

    automatic rifles combed the neighbourhood, just south of the

    port city of Mombasa, as nervous residents peered through their

    windows, witnesses said.

    The instability has kept many foreign tourists away. The

    number of visitors to Kenya was down by a fifth in the first

    eight months of this year, a heavy blow to the tourism sector

    which is a main driver of east Africa's biggest economy.

    In Nairobi, Kenyan police arrested Mohammed Dor, a

    legislator and prominent Muslim cleric from the coastal region,

    after he said he had no objection to funding the separatist

    Muslim Mombasa Republican Council if they approached him.

    "He will be charged in a Kenyan court of law on Thursday for

    incitement to violence," Ireri Kamwende, Nairobi's provincial

    criminal investigation officer said.

    Dor's arrest sparked fierce criticism of the police by

    Kenya's Muslim leaders, who said their community was now living

    in "fear" of the police.

    "We take this as a humiliation. It's not only an

    embarrassment, it is disgraceful," Abdullahi Abdi, chairman of

    the National Muslim Leaders Forum, told reporters in Nairobi.

    Kenyan authorities have intensified a crackdown on the MRC

    movement which is seeking independence for the coastal region, a

    tourism and trade hub. The MRC says the region has suffered

    decades of social and economic marginalisation.

    On Monday, MRC leader Omar Mwamnuadzi and 36 supporters were

    arrested. Kenya's government said last week it had information

    that the MRC intended to sow chaos during national school exams

    that began on Monday.

    Though there are no known links between the MRC and al

    Shabaab, there is a sizeable community of indigenous Somalis in

    Nairobi and along the coast swelled by numerous Somali refugees

    fleeing conflict in their homeland.

    They as well as Kenya's Muslims, who also make a large part

    of the coastal population, are thought to harbour some

    sympathies with the Somali militant group, as well as demands

    for secession for the coastal strip.