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Armed police officers joined a large emergency presence in Ashford town centre following reports of a man wielding what is thought to have been a chainsaw.
Police are understood to have been alerted to the erratic behaviour at some time after 8pm, with members of the public threatened.
Staff at the Coral bookmakers in Castle Street say he had a t-shirt over his head and used the power tool to cut into the shop's window, and also damaged a lamppost.
A Kent Police spokesman says officers were called to Castle Street at 7.51pm after it was reported a man had damaged a shop window with a power tool before making threats to two members of the public nearby.
They added: "No injuries have been reported and at present no arrests have been made, however officers remain in the area conducting enquiries."