HIV/AIDS discussion has revolved in Kenya for quite a number of years, triggered by the effects experienced both by individuals and communities. Various interventions such as VCT services were started to curb the pandemic. However, the utilization and perception of VCT services by the young people remain poor. The main purpose of this study was to investigate the utilization, perception and source of knowledge about VCT services by the youth in public diploma colleges in Nairobi. The study employed cross-sectional survey research design with a sample size of 200 students from five major public diploma colleges in Nairobi. Simple random sampling procedure was used to arrive at the sample. Questionnaire was used to collect data from the respondents. The collected data were analyzed with the help of a Statistical Package for Social Sciences (SPSS). Quantitative approach of data analysis was used. The results were reported using frequencies and percentages. The study revealed that 75% of the students feared utilizing VCT services. Their perception of VCT services was highly informed by the underlying fear of turning HIV positive and what others would think of them. The main sources of information and knowledge about VCT services included TV (29%), Church (23%), Radio (21) and Newspapers (21%). Parents however hardly played any role as far as provision of VCT information were concerned. Only 1% indicated that they obtained their information from them. These findings have deep implications in terms of contributing towards design and implementation of policies guiding voluntary HIV/AIDS counseling and testing services in colleges and universities in developing economies.