Local peace initiatives have been introduced in post-conflict settings in aid of statebuilding processes. However, contradictions in such efforts that undermine the state become apparent in a development context when government institutions are, generally, functioning. Peacebuilding initiatives in the arid lands of Kenya are a good example of this. While they have proved successful in resolving conflicts at the local level, they challenge the state structure in three ways. First, some of their features run counter to the official laws of Kenya and jeopardize the separation of powers. Second, they pose a dilemma, since their success and legitimacy are based on grassroots leadership and local concepts of justice. Both can be at odds with democratic decision-making, inclusiveness and gender equity. Third, they provide yet another tool for abuse by politicians and other local leaders. This reveals a dilemma: aspects of peacebuilding can actually undermine a statebuilding endeavour.