Formed in 1863 by Takasugi Shinsaku in Shimonoseki, Yamaguchi Prefecture, the Kiheitai militia consisted of 300 men, who came from all social classes, including farmers, merchants, samurai and others.

It was partly funded by the Chōshū domain, but gained the rest of its financial support through donations by wealthy merchants and farmers.

Kiheitai followed a developing trend which had been spearheaded by the shogunate following the Convention of Kanagawa to form military units based on ability rather than hereditary social status.

Shinsengumi, a Kyoto-based, pro-Tokugawa police force, was founded in the same year as Kiheitai, and was also composed of people from a broad variety of social classes.

The success of the socially mixed unit and its Western armaments and tactics was an important influence on the development of the Imperial Japanese Army, and on the later system of universal military conscription in Japan.