A husband killed her wife in Kabukara village, Bungoma, following a dispute over Sh150 loan.
The argument ensued when the wife refused to give him the money she was loaned, prompting the husband to beat her up before stabbing her severally on the breasts and stomach.
Sources say the woman died on the spot, Wednesday.
Neighbours said the lady intended to use the cash to buy medicine for her ailing grandmother.
The neighbours were angered by the incident thus causing them to assemble at the scene and stoned the man to death.
The brother to the husband was also beaten to death by the crowd when he came with a panga to rescue his brother.
The police took the three bodies to Bungoma Referral Hospital mortuary.
Sirisia MP John Waluke, visited the homestead, and condemned the incident.
“This is very sad incident since most of my electorates whom I expected to vote for me in the coming polls have died a lot because of these cheap sachet liquor that come from neighbouring town in Uganga,” said Waluke.