In the online dictionary I typically use, both bishop's staff and khakkhara are given as possible translations. I think in both cases it's a spiritual figure who uses it, but the nuance definitely seems different for the khakkhara in what type of spiritual figure uses it.
I was unfamiliar with the term khakkhara, but after reading the link above, I think I'm convinced that it's the intended meaning. According to the entry, the khakkhara is a weapon associated with warrior monks. That seems consistent enough with its usage in this game to suggest it's what they were going for.
May someday resume the quest for higher education, or else change my name here. Won't stop playing games either way.