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The bodies of 10 people were discovered among the remains of torched houses in Poromoko, which is on the Kenyan coast between the city of Mombasa and the Kenyan border.
Al-Shabaab militants claimed responsibility for the overnight attack on their radio station Andalus, but said they had in fact murdered 20 people.
Police are continuing to search the area for bodies and the death toll is expected to rise.
The area in which the 10 bodies were discovered is close to the village of Mpeketoni, where 53 people were brutally killed in a raid on Sunday while they watched the World Cup.
Local residents said militants also entered a third village, Mapenya, overnight, burning several homes to the ground, according to Kenya