Peace Education is steadily emerging as a peace building initiative in the world today. The United Nations High Commission for refugees (UNHCR) has adopted and introduced it for conflict resolution in refugee Camps referring to it as suitable for behavior change. However, the fundamental question is whether empirical tests can ascertain its success in achieving the objective of conflict resolution in refugee camps. Available researches indicate that Peace Education helps to equip refugees with conflict resolution skills mainly because of its integrative themes but do not explicitly demonstrate that peace has been achieved due to its implementation in Kakuma refugee camp. The themes of peace education are environmental education, conflict resolution education, human rights and democracy education, formal education and human security education. The rationale of the study was to assess how peace education positively transforms inter-ethnic conflicts among Kakuma refugees in a bid to establish its success in sustainability of peace. This study was based in Kakuma Refugee Camp due to its long experience with implementation of Peace Education Program (PEP)which has lasted for two decades. The period of study is from 1994 to 2014. Limitations of study were addressed by recruitment of suitable research assistants. The study is justified by the fact that the success of peace education in Kakuma Refugee Camp is not substantially documented yet it has been implemented. There is also a conspicuous lack of literature analyzing how peace education tackles inter-ethnic conflicts in Kakuma refugee camp. Social learning theory is applied as the lead theory. It explores ethnic identity as a social learning activity. The theory also ushers Peace Education as a social learning process and therefore serves both cause and effect variables.