Both transport companies were fighting over a piece of land at the heart of the city.
The clashes started at the Asafo bus terminal where some workers of the VIP Group prevented drivers of STC from using an area close to their terminal.
They also prevented a bus load of passengers from taking off.
Leaders of the VIP claim the land belongs to them, hence their refusal to allow STC to operate on it.
Police who have moved in to ensure security, have arrested one person believed to be a member of the Ghana Private Road Transport Union (GPRTU).Ashanti Regional Minister, Simon Osei Mensah, Deputy Regional Minister, Elizabeth Agyemang and Mayor of the Kumasi Metropolitan Assembly, Osei Aassibey–Antwi are at the terminal to resolve the issue.