The ages of the children was not immediately known
It is understood that a Durban Transport bus and a minibus carrying school children collided head on near the Mbondwe Road junction.
The force of impact sheared the taxi in half, and pushed it to the roadside.
Paramedics scrambled to stabilize a critically injured teenage boy, working in amidst the bodies of the dead.
Twelve others were injured and were transported by ambulance to local clinics and hospitals.
Officials from the eThekwini Municipality were at the scene to initiate an investigation into the crash.