Manchester is a home rule-class city in Clay County, Kentucky, in the United States. Manchester is part of the Corbin KY Micropolitan area…Manchester is a home rule-class city in Clay County, Kentucky, in the United States. Manchester is part of the Corbin KY Micropolitan area, as is the entirety of Clay County, and is the seat of its county and the home of a minimum- and medium-security federal prison. The city's population was 1,255 at the 2010 census.