The story
Related to kiki: either related to the sense "lesbian who is neither butch nor femme" because a butch who was sexual with another butch was considered un-butch and thus kiki, and likewise a femme sexual with another femme, and the term was then extended to a trans person who was sexual with another trans person or a drag queen who was sexual with another drag queen, or perhaps extended from the sense "gathering for gossiping, social activity".
Etymology from Wiktionary, CC BY-SA 4.0.