In the late 1800s, the British North Borneo Company settled nearby a fishing village named Api-Api, which was designated as the main harbour, port and railway center. Api was later renamed Jesselton and became a major trading post of North Borneo.

Jesselton was razed by the retreating British early in World War II, and was again destroyed by Allied near the end of the war, leaving only three buildings standing.

After the war, British Crown gained control of Jesselton and elected to rebuild Jesselton as the capital of North Borneo. Jesselton was renamed Kota Kinabalu on 30th September 1968 and received official city status on 2nd February 2000.