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Decline in moral standards is an issue that continues to affect society in many sectors ranging from politics, education and religion among others. This study investigated the relationship between peer pressure and moral competence among undergraduate students in Karen region, Nairobi. The study was anchored on Kohlberg’s (1958) moral development and Bandura’s (1977) social learning theories. The study used explanatory sequential mixed methods research design. A sample of 410 participants from a total population of 4,229 students was used. First, the researcher collected quantitative data and analyzed it, after which the researcher selected ten participants for qualitative data. The quantitative data were analyzed using descriptive and Pearson correlation while qualitative data were coded and analyzed thematically. The findings indicated that there was weak positive and significant correlation between peer pressure and moral competence. Based on these findings, the researcher recommended inclusion of moral competence in the curriculum. Finally, more studies on moral competence in the light of other variables such as self-awareness, self-efficacy, emotional and social competence may be done.