This research report study aimed to investigate the “impact of workplace diversity on employee performance in an organisation. a case study of Rukungiri town council, Rukungiri district”. Questionnaires were used to collect data under a case study research design. Qualitative and quantitative means were used to analyze the data. The objectives of the study used were; To establish the effect of internal work place diversity dimension on performance of public organizations in Rukungiri town council, to examine the effect of educational background on employee performance in Rukungiri town council, to establish the relationship between customer satisfaction and employee performance in Rukungiri town council. The study sampled 38 respondents because it is large enough compared to the study population, the respondents were selected using simple purposive sampling method, it was important because it gave the researcher freedom to select certain respondents with in-depth knowledge regarding the issue under investigation. In their response as to whether internal work place diversity like age, gender increased employee satisfaction and fosters better positive attitudes and behaviours, 53% of the respondents strongly agreed to the statement, 26% to agreed, 9% remained undecided, while 5% disagreed and 9% strongly disagreed. This was an indication that most employees in the public sectors were in agreement that age and gender increased employee satisfaction and fosters positive attitude and behaviours. There is also need for an extensive training to be carried out among the managers not only in the human resource department but across the ministries. This is because the management has a significant role that they need to play in incorporating diversity management.