Recent years have seen unprecedented pressure from numerous water stakeholders with different interests in Lake Naivasha basin, the only freshwater lake in the Great Rift Valley of Kenya. The pressure on this water resource results in high competition over access to water source, unsustainable resources management practices, poor water quality, and emergence of conflicts between institutions and its users. Presently, there is a knowledge gap and paucity of information on water resources stakeholders’ interactions in Lake Naivasha basin. This study, therefore, analyses the ways resource stakeholders interact and play in the conflict dynamic, and ultimately propose a better water resource use and management approaches. Drawing on field assessments, individual interviews, focus group discussion, and secondary literature reviews, this paper illustrates how both local, national and multi-national stakeholders interact and contribute to water resources conflicts. Results suggest unclear county and national institutional structures, fragmented land use activities and ownership, a feeling of marginalization by the local population contributing to resource-based conflict within the lake basin. A comprehensive policy framework and enforcement of existing regulations will ensure there is sustainable water access, reduce conflicts and enhance sustainable water resource governance and use of the lake.