KBV was set up in 1944 soon after the death of Mrs. Kasturba Gandhi, wife of Mahatma Gandhi by close followers of Gandhiji, who wanted to provide quality education for girls from underprivileged families. In fact Gandhiji himself was present in the school when it was opened on 2nd April 1944 by Shri C.Rajagopalchari who later became the first Governor General of India. The school was set up on a plot of land of 2.5 acres donated by Shri Manmohan Dhar and its funding was provided by prominent philanthropists who were close to Gandhiji and his ideals.
KBV has about 800 girl students out of which about 150 live in the hostel which is only meant for scheduled caste (SC) girls. The school has classes from KG to 12th. It is affiliated to CBSE and is a Government aided school, which means that 95% of the salaries of teachers and other staff are paid by the Government of Delhi