The Director of the Vanuatu Meteorological Service says Cyclone Kerry could hit the island group overnight.
Jotham Napat says the cyclone is currently 388 kilometres east northeast of Maewo Island.
Mr Napat says given the cyclone's speed it is likely to affect the northern islands of Vanuatu within the next 6 to 12 hours.
He says some of Banks Islands are already experiencing rain and gale force winds should soon follow.
Mr Napat says the winds of around 35 to 40 knots could be damaging.
"I think more traditional houses could be damaged, especially the gardens and the crops could be damaged as the system passes over any of the islands here."
The Director of the Vanuatu Meteorological Service, Jotham Napat.