Kensington is located in West Central Minnesota, in the SW corner of Douglas County, on land that was once used by the Chippewa Indians and by hunting parties of the Dakota Indians.

In the 1870's the first homesteader in the area was Niles Risburg, who had a dugout and later built a shack on the hill where the city water tower is now. By 1885 many settlers had built homes and started businesses in the area. It was at this time the town received it's name. A man named Maxfield, who worked for the railroad, had a beautiful flower garden (where the fire hall is now) which reminded him of the famous Kensington gardens in England. In 1887 the town was plated and the streets given names.

Kensington was beginning to grow but as of 1890 the town was not organized into a village. Births within what we know as the city limits were still registered in Solem Township. The first council meeting was held September 1891. In October the council members, called the common council, began drawing up the first rules and ordinances of the city.