KEDA was established on 28 May 1981 under Act 249, Kedah Regional Development Authority Act 1981 with the intention to assist in speeding up the growth of the socio economy and infrastructure under KEDA operational territory.

KEDA operational territory covered an area of 8,564 sq km which is 90.2% of the whole state of Kedah. As a Federal Government agency under Ministry of Rural Development (KPLB), KEDA is responsible in many aspects of development including poverty eradication programme, traditional village development and housing for the poor people programme (PPRT), development of small and medium industries as well as entrepreneurship programme, skills training, development of human capital, infrastructures and social amenities.

In the 10th Malaysian Budget Plan, the main focus of KEDA development programme includes regional development and towards self dependency (biaya diri). The regional development programme covers physical development, economy and human capital especially at the less develop areas in the rural and remote regions. On the other hand, towards achieving the self dependency (biaya diri), KEDA has put up the initiative to establish a subsidiary under it.

KEDA is committed in implementing a high quality development and service programmes to fulfill its customers’ satisfaction based on efficient, trustworthy, competent and friendly services to achieve its motto ‘Mensejahterakan Luar Bandar’ (balanced development, prosperous people).