The study was focused on examining the Inter-Ethnic relations among students from diverse backgrounds by formulating four basic questions. In order to deal with these basic questions the researcher tried to identify variables namely ethnicity, ethnic group, ethnic identity, ethnic relations and ethnic conflicts which would help us to understand students' inter-ethnic interaction very well. In this study the research participants were purposely selected and interviewed. In doing so, great effort was made to maintain the Multicultural Composition. In the study qualitative methodology (Purposive Sampling) was employed. Based on the instruments and methods employed the result shows KCTE students are mainly affected by ethnicity, ethnic politics,idological and linguistic differences. Further more; students interaction in the College is characterised by suspicion and uncertainty. With regards to the sources of ethnic conflict, it has been found that ethnicity; religion; political outlook differences; graffiti; group noise; cheating and stealing properties; anxiety and stress; and lack of teaching and reference materials were the main ones.