This study was informed by the differential theory which premises on the varying efficiency levels among firms as the main indicator of successful strategic alliances. Towards this end, the differential theory argues that corporate managerial efficiency is the key driver for strategic alliances. Adopting a case study research design, this study’s aim was to investigate the main challenges facing the implementation of strategic alliance between Kenya airways and the KLM Royal Dutch Airline. The study adopted a case study research design and was guided by the following main objective; to establish the key challenges facing the implementation of the strategic alliance between Kenya Airways and KLM Royal Dutch Airline. Ten strategic managers were interviewed five from KLM and a similar number from Kenya Airways. The procedure involved personal interviews to help to determine the approaches to strategic alliance management practices and challenges encountered during implementation. Qualitative data was obtained from the interview guide and was analyzed using Content analysis. The study found out that: lack of partner congruence; poor partner evaluation; blending of corporate culture; lack of clear performance measures; absence of coordinated commitment; and lack of strategic fit are the main categories of challenges facing successful implementation of strategic alliance between Kenya Airways and the Royal Dutch Airline. The study concludes that; the implementation of the strategic alliance between Kenya Airways and the Royal Dutch Airline has not been successful due to a number of implementation challenges ranging from blending of corporate culture; lack of clear performance measures; absence of coordinated commitment to lack of strategic fit. The study recommends that other firms not only in the aviation sector but across other sectors embrace best practice and dynamic capability approaches in the management of strategic alliances to enjoy the benefits of such ventures, while mitigating the failure of strategic ...