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Armed police descended on a residential road following a report of man seen with a weapon.
At least six police cars parked up in the area around Reachfields and Dymchurch Road in Hythe just before 1pm.
A helicopter was seen hovering over the area, with a police dog unit also present.
Armed police at the scene in Hythe
The suspect was said to have been seen carrying a bladed weapon and it is alleged he used threatening behaviour to another person, believed to be known to him.
No injuries were reported.
A nearby business owner, who didn't want to be named said: "There were around four ambulances and six police cars there.
"A mate of mine lives in Reachfields and couldn't even get back to his own flat. The police wouldn't let anyone near the area."
The ambulance service says the incident is at a private address and is unable to comment.
Police left the scene at about 3pm.
Hythe resident Rory Hards, 19, said: "We were walking past and saw it going on. Nothing like this happens here.
"My neighbour is a police officer and is usually just patrolling the area. I heard there was something on Facebook. I didn’t think it was this."
Police have been approached for more information.