According to witnesses, most of the dead and wounded were forces loyal to the government. Among the dead were two female tea sellers who came to the shop to sell tea.
Hiirey Mohamed, Dayniile district commissioner told RFI that the scene of the explosion was ugly and he saw blood and flesh everywhere. Mr Hiirey added that among the dead was a senior military officer and several of his bodyguards.
Dayniile neighbourhood is notorious as a hotbed for Al-Shabab militants. The latest blast shatters months of relative calm in the capital Mogadishu.
Government officials blamed Al-Shabab militants for the blast, saying that such an attack is a clear sign that the group is still active despite being driven out of Mogadishu and other major Somali cities by an African Union-led peacekeeping force.