The attack happened on Wednesday.
The police, in a press statement, said the suspects shot and killed Bugri Imoro, 38, and severely wounded a 37-year-old man.
They have launched a special anti-robbery operation to hunt down the suspected armed robbers who attacked the vendors at Yama, a village in the West Mamprusi Municipality.
The gang, the police say, made away with an unspecified amount of money and other items.
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The police in the West Mamprusi Municipality said it had intensified patrols and anti-robbery operations to apprehend the robbers.
“We want to assure the public of our resolve to weed out armed gangs in our communities to ensure socio-economic activities are carried out in a peaceful and safe society,” it said.