Residents of Mogadishu are mourning after several civilians were killed in a rebel attack on African Union forces late Monday night.

Al Shabaab militants, who are allied to Al Qaeda, fired shells at Burundi troops in Northern Mogadishu.

They missed their positions and hit two residential houses, killing at least seven civilians, and sparking a deadly overnight battle.

As people gathered to collect the bodies and offer prayers, a neighbour of the deceased recounted what had happened.

(SOUNDBITE) (Somali) NEIGHBOUR OF DEAD FAMILY, AMINA ALI, SAYING:

"Now you see, our neighbours' families died last night when artillery shelling landed behind their home. We are very shocked and sad to see this tragedy."

The overnight fighting took place in Mogadishu's northern Daynile district, the rebels' last position after an AU peacekeeping mission and Somali troops forced them out of the city last year.

Meanwhile, a UN delegation visited an internally displaced camp in Mogadishu to assess the needs of residents who fled from areas still affected by the conflict.

Al Shabaab has waged a bloody five-year campaign to topple Somalia's Western-backed government and impose its harsh interpretation of Islamic Sharia law.

Sarah Sheffer, Reuters