Does Mna mean both "you have" and "there are"? For the latter, is the "M" a prefix for a noun class?
Correct. For "you have", "m" is the subject prefix for you (plural). For "there is/there are", "m" is from the mahali locative class implying specifically "inside of" something (here, inside the room). The other two ways to say "there is/there are," also from the locative class, are "kuna" (implying some indefinite location) and "pana" (implying a specific, definite location).
So "you have children in the room" can be acceptable right? because I know I'm not crazy.
i understand the m-na for "you have", but I've missed the lesson on locative m-na for there are/is...can someone point me to reference materials on that one, please? thanks in advance!
I just found this book chapter on locative agreement. It has examples of "mna" meaning "there is (inside)":
(Swahili Grammar and Workbook by Fidèle Mpiranya) - See chapter 16, p.116.