The woman was stabbed in the throat and died on the spot, police and witnesses said.
It is not clear what triggered the fight between the woman and a reveller, police said.
A team that visited the scene on Sunday morning said they established that Metrine Simiyu, 28 had attended to customers at a bar when a dispute arose between her and one a reveller.
It was then the assailant picked up a sharp object and stabbed the woman in the throat causing a deep cut.
Witnesses said the woman fell on the floor bleeding profusely.
She succumbed to the injuries minutes later.
Police said her body was moved to the local Busia County Referral Hospital mortuary awaiting post-mortem.
The assailant is said to have escaped the scene minutes later.
Efforts were being made to trace and arrest him, police said.
Elsewhere in Kendubay, Homa Bay, a man aged 75 died by suicide.
Police who visited the scene said Abdul Wadud, 75, had hanged himself inside his house using a rope while all doors were locked from inside.
It was established that the deceased had been having domestic wrangles with his brother over the management of their late father’s property.
The body was moved to the mortuary pending autopsy and other investigations.
In Sirisia’s Malinda area, Bungoma County, one Martin Butali died by suicide.
He died by hanging on the roof truss of his two-room mud house using plastic manila rope tied to his neck with blood oozing from the mouth and the left ear.
No suicide note was left behind and no motive for the suicide was established, police said.
The body was moved to Bungoma County Referral Mortuary awaiting the autopsy report.
Cases of suicide have been on the rise amid calls to address the trend.
The World Health Organisation says such cases are attributed to joblessness, death, academic failures or pressures, legal difficulties and financial difficulties.
Other reasons are bullying, previous suicide attempts, history of suicide in a family, alcoholism and substance misuse, depression and bipolar disorder.
by BOSCO MARITA