The town's fire station is nearby and crews were quickly on the scene, a total of 26 firefighters from Kaikohe, Okaihau and Kerikeri taking just over an hour to bring the blaze under control.
Kaikohe deputy Chief Fire Officer Wiremu Matene said the building was "totally involved" when the brigade arrived, but everyone was out and unharmed.
"Flames were coming out the windows, towards the footpath, and were creeping down the building," he said.
Firefighters concentrated on limiting the fire to one end of the building, then broke down a back door to tackle it from inside, but were pulled out when one of the masonry walls appeared to be bowing, raising fears for their safety.
The former Methodist church, converted into a pre-school centre, was gutted, the fire consuming the furnishings, books, toys and children's artwork. The other half of the building, used by children under two, was perhaps less damaged but little remained of that too.
Local tow truck operator Tony Taylor helped police shift three cars nearest the blaze. One suffered extensive heat damage, but Mr Taylor said if they hadn't been moved "we'd have been dealing with three car fires as well."
Lynda Adams, co-owner of Cre8ive Glass on Broadway, was heading to work when she saw smoke and went to investigate.
"I saw the mums and babies in one corner by the fence, so I thought ,'I've got to help them'," she said.
Though fearful, the women stayed calm as they lifted the children to safety.
"They were amazing," Mrs Adams said.
She then watched as what had been smoke billowing from the eaves turned into an inferno.
"It just erupted. There were major flames pouring out, there were explosions and glass shattering."
The blaze was especially sad because the owners and staff had put a lot of work into transforming an old daycare centre into a place that was "gorgeous for the kids," she added.
Acting Northland manager for Kidicorp ABC, Helen Carroll, praised the staff for their quick response, ensuring that none of the children were hurt.
"We have monthly fire drills - we're very strict on that - and they did everything they're trained to do," she said.
The company was working with the Ministry of Education and would hold a meeting with staff today, after which parents would be informed of the centre's plans.
Mr Matene said it was the largest structure fire the Kaikohe brigade had fought in years, and the response from local firefighters, as well as volunteers from other brigades who happened to be in town, was excellent.
It was becoming increasingly difficult to raise a crew during the day because employers were holding their workers back, he added, a problem that all brigades were facing.
The cause of the fire was not known at edition time yesterday, but fire investigator Craig Bain was scouring the ruins for clues.
