Police in Kisumu fired tear gas and shot in the air several times to disperse matatu crews who were fighting over routes.
The chaos brought transport activities at the town's terminus to a standstill as police engaged the rival groups in running battles.
There is a fight between the two groups, whose members at times are armed with crude weapons, is over the control of Kisumu-Bondo and Kisumu- Nairobi routes.
Police said the row was brewing since the weekend. On Monday, four people were left with panga cuts. Cars were stoned. Windows smashed.
Kisumu Central police boss Boniface Mutie stormed the bus terminus with anti-riot officers who restored calm.
Several commuters were caught up in the fight and were forced to scamper for safety.
Mutie said the two groups have been embroiled in a tussle over who should be in charge of the Nairobi route.
Some crew members told the Star that the operators are against one of their leader, only identified as Jack alias Jacksnie, who they say is mistreating them.
He said those working in the Bondo route were angered by the way Jack has been handling them at the bus park.
Jack was admitted to Aga Khan hospital after police rescued him from a mob of touts.
The Kisumu terminus has had its share of scenes of violence, mostly orchestrated by rivalries over routes, parking bays, and runways.
Residents have complained that despite the obvious signs of disorder at the facility, the police have turned a blind eye.
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