The man was covered with a blanket at the stop in Durban Road, Durbanville.
A bloody drain cover, believed to be the murder weapon, was found near the body.
Stefano Baadjies, 23, from Malmesbury, says he knew the deceased as China, and they slept at the bus stop.
Stefano says security guards saw China fighting with another man over his kombers.
The guards called the cops, but they were too late to save China.
“They hit him hard because, look, even his money is bent,” Stefano says, pointing to coins lying near the body.
Police say a suspect in his thirties has been arrested and will appear in court once charged.