When the station first appeared in Hong Kong Mass Transit: Further Studies plan in 1970, it was simply known as Kennedy (Chinese: 堅尼地).

It was to be built as part of the Island line in the 1980s, but construction of the line did not commence westwards beyond Sheung Wan, on account of contractors citing inadequate passenger numbers and technical difficulties.

Under the latest proposal as of June 2005, Kennedy Town would be served by West Island line as an extension of the Island line, a heavy rail system, instead of being served by a medium capacity rail shared by commuters from Southern District, after pressure from local community groups.

Demolition of the swimming pool, which occupied the bulk of the station site, was underway by 2011.

The re-provisioning contract for the new Kennedy Town Swimming Pool was awarded to Paul Y.