The passenger boat was headed for Kiwa Island from Remba Island when the incident happened at about 2 am today, regional police chief Willy Lugusa said. Lugusa said the bodies of two children have been recovered.
Lugusa said initial reports had indicated that the boat was carrying 200 people at the time of the collision, but it later emerged there were 23 passengers on board.
The fishing boat had four people and have all been accounted for, he said. Lugusa said 21 people from the passenger boat have been rescued.