The exploitive and inequitable management of natural resources has exacerbated ethnic divisions and the struggle to capture the benefits of finite resources. Conflicts are caused by competition for scarce resources (economic, political and social). Policies adopted have ushered in partial settlements, reflecting compromises between parties - mainly states - over territorial issues. This paper interrogates the challenges and opportunities in the management of the Kenya- Ethiopia Cross border resource conflict. This is achieved through the analysis of the challenges and opportunities experienced by core actors involved in the management of the Kenya- Ethiopia cross border resource-use conflict. The key focus of this study was to analyze the contribution to the creation of conditions of positive peace through conflict transformation. This promotes a series of strategies which go beyond the statecentered dynamics of negative peace. The paper seeks to elaborate the structural problems and inequalities which are often the sources of tensions that can escalate into destructive conflict.