Business was interrupted in Keroka town, Kisii county, on Tuesday when traders and residents demonstrated following the killing of a businessman.
They barricaded the Kisii-Nairobi highway when the body of Francis Kinuthia was found 200 metres from Keroka police station.
The residents said Sh70,000 was stolen from Kinuthia.
They said he had conducted a drive to raise money for the burial of another trader killed two weeks ago.
The demonstrators met and formed a 27-member committee to provide security, saying police have failed.
Resident Michael Maranga said some community policing members have turned into criminals.
Area police boss Peterson Maelo said officers conduct regular patrols.