Kailali Multiple Campus (KMC) is located in Dhangadhi, the headquarter of the Seti Zone of Far Western Nepal. The population of the Kailali District largely comprises native Tharus and migrated people from different districts of the Far Western Region and other parts of Nepal.

Kailali District is one of the most backward districts of Nepal with little infrastructure base and a poor state of educational facilities which is evident from the fact that prior to the establishment of KMC in 1980, most of the students of this region had to go to Kathmandu or to India for further studies beyond SLC.

The absence of educational opportunities after SLC created an urgent social demand for the establishment of a campus in the district. The people of Kailali thus took the initiative for the establishment of a campus. Consequently, Kailali Commerce Campus, which was later renamed as Kailali Multiple Campus, was established in 1980 as an affiliated Campus of Tribhuvan University.

At the request of the people of Kailali, the Government of Nepal granted 27 bighas of land in the eastern part of Dhangadhi town where the Campus premises are located at present. Financial and other resources required for the establishment of the Campus were raised locally.