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. In 1849, the Holy Assumption Russian Orthodox Church was established by Egumen Nicholai. In 1869 the U.S. military established a post for the Dena'ina Indians in the area, called Fort Kenay, which was abandoned in 1870 after Alaska was purchased by the U.S. A post office was established in 1899. Through the 1920s, commercial fishing was the primary activity. In 1940, homesteading enabled the area to develop. The first dirt road from Anchorage was constructed in 1951. In 1957, oil was discovered at Swanson River, 20 miles northeast of Kenai - the first major Alaska oil strike. In 1965, offshore oil discoveries in Cook Inlet fueled a period of rapid growth. Kenai has been a growing center for oil exploration, production and services since that time.

The City is the center of the oil and gas industry, providing services and supplies for Cook Inlet's oil drilling and exploration. Tesoro Alaska's oil refining operations and Unocal's urea plant are located in North Kenai. Tourism is estimated as a $95 million per year industry on the Peninsula. Other important economic sectors include sport, subsistence and commercial fishing, fish processing, timber and lumber, agriculture, transportation services, construction and retail trade. 226 area residents hold commercial fishing permits. The largest area employers are the Borough School District, Unocal, Peak Oilfield Services, the Borough, and Central Peninsula Hospital. Work is scheduled to begin during Summer 1998 on the Challenger Learning Center. Two high-tech fire-fighting training facilities, totaling $15 million, will open in May 1998. Jointly called the Pacific Rim Institute of Safety Management, it consists of a City- and FAA-operated firefighter school at the airport, and a nearby industrial firefighter school, operated by a private firm.

Kenai is accessible by the Sterling Highway to Anchorage, Fairbanks, Canada and the lower 48 states. The City-owned Kenai Municipal Airport provides a 7,575' asphalt runway, a 1,000' turf strip, a float plane strip, and helicopter service. A Flight Service Station is available. Float plane facilities are also available at Island Lake and Arness Lake. There are five additional privately-owned airstrips in the vicinity. The Kenai City Dock and boat ramp are located near the mouth of the Kenai River. There are also a number of private commercial fish processing docks, but no boat moorage.

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Data in this section was provided by the
Alaska Department of Community and Economic Development