Kenai is located on the western coast of the Kenai Peninsula, fronting Cook Inlet. It lies on the western boundary of the Kenai National Wildlife Refuge, on the Kenai Spur highway. It is approximately 65 air miles and 155 highway miles southwest of Anchorage via the Sterling highway. The community is in the Kenai Recording District. The area encompasses 29 sq. miles of land and 5 sq. miles of water.

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Prior to Russian settlement, Kenai was a Dena’ina Athabascan Indian village. Russian fur traders first arrived in 1741. At that time, about 1,000 Dena’ina lived in the village of Shk’ituk’t, near the River. The traders called the people “Kenaitze,” or “Kenai people.” In 1791, a fortified Russian trading post, Fort St. Nicholas, was constructed for fur and fish trading. It was the second permanent Russian settlement in Alaska. Hostilities surfaced between the natives and settlers in 1797 when what is dubbed the battle of Kenai, an incident in which the Dena’ina attacked Fort St. Nicholas, resulting in over one hundred deaths from all involved parties. Later, in 1838, the introduction of smallpox killed one half of the Dena’ina population.

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In 1888 a prospector named Alexander King discovered gold on the Kenai Peninsula. The amount of gold was small compared to the later gold finds in the Klondike, Nome and Fairbanks.

In 1894, the Holy Assumption of the Virgin Mary Russian Orthodox Church was built in the village. It is still in use today.