Kuala Penyu was declared as full district in the year 1975 and established as focal point for administrative and business centre.

The population of the Kuala Penyu district according to the last census in the year 2010 is 18,958 inhabitants and consists mainly of Kadazan or Dusun Tatana, which make up the largest ethnic group.

[1] There are also a significant number of illegal immigrants from the nearby southern Philippines, mainly from Sulu Archipelago and Mindanao which are not included in the population statistics.

More recently Kuala Penyu's surrounding long, deserted beaches have brought in both international and local tourists to the area.

Positioned perfectly for a sun rise, or sunset, depending on which side of the peninsular you are, the location is proving to be a 'weekend hot spot' for those escaping the city life.