Morocco's Ali Ezzine took bronze while the gold medal favourite Bernard Barmasai could only manage fourth.
It was a captivating tactical race with the Moroccans trying to upset the Kenyan dominance in the event. Since Amos Biwott's gold in 1968 they have won every 3000m steeplechase title they have competed in.
The three Kenyans dictated the pace and when it came to the final push it was Seroney, the Kenyan national champion, and Kipketer, second in the world championships last year, who found themselves battling for the gold.
Bumped
The two bumped 10m out, unbalancing the former world record holder who appeared to be baulked.
But Kipketer was the first to rush across and congratulate the 21-year-old after the race.
"We were both so excited we did not realise how close we were," said Kipketer.
"I am just happy we won and Kenya keeps up its record in the event. It is also our first gold medal of Games," he added.
Doubts
Seroney, who received a phone call from Kenyan President Daniel arap Moi, as he left the track, said he never had any doubts he would win.
"I am not surprised I won. I know how good I am," said Seroney.
"I won the world junior championships three years ago and I knew then I would win an Olympic title."
Seroney added that the fear of Kenya not winning the title had played on his mind during the race.
Outrage
"As I was running I was thinking what it would be like if Kenyan did not win gold. There would have been outrage at home and something unbelieveable would have happened to us," he explained.
Germany's Damian Kallabis, who was fourth in the 1999 world championships in Seville and a medal hopeful saw his hopes crash at the first jump.
Kallabis tripped and tumbled to the track. He got up and continued but his race was over as he trailed in last.