Situated in eastern Myanmar, it is bounded on the north by Shan State, on the east by Thailand's Mae Hong Son Province, and on the south and west by Kayin State.

The British government recognized and guaranteed the independence of the Karenni States in an 1875 treaty with Burmese KingMindon Min, by which both parties recognized the area as belonging neither to Konbaung Burma nor to Great Britain. Consequently, the Karenni States were never fully incorporated into British Burma. The Karenni States were recognized as tributary to British Burma in 1892, when their rulers agreed to accept a stipend from the British government.

In August 1948, the Karenni leader U Bee Htu Re was assassinated by central government militia for his opposition to the inclusion of the Karenni States in the Union of Burma. An armed uprising swept the state that has continued to the present-day.

In 1996, Myanmar's State Law and Order Restoration Council (SLORC) of stepped up its campaign to crush Karenni independence with a population transfer program, forcibly moving villagers to designated relocation sites to deprive the pro-independence forces of bases of support. The Myanmar government has been accused of massive human rights violations in the region.

As with many other states in Myanmar, which have ethnic minority populations, Kayah state has its own fair share of alleged human rights abuses by the Burmese military junta and the Burmese armed forces.

It has been alleged that villagers lived under the constant threat of rape, beatings, arbitrary arrest or execution, conscription as slave labor for the Myanmar army, and having their food and possessions taken without compensation.

"The SPDC also arbitrarily closes roads for non-military travel in Karenni State, further restricting villagers movements. Landmines are often planted along roads to prohibit the villagers' movements. Villagers, fearful of landmines and potentialinjuries, further restrict their own movements. Even with a valid travel pass villagers are still vulnerable to abuses and exploitation. There have been reports of arrests, torture, extrajudicial killings and rapes of villagers who have had permission to travel. Villagers have also been shot at when they have been outside of their communities."

It has also been alleged that the relocation centers have inadequate access to water, food, medical services, and educational facilities. An estimated 50,000 Karenni people classified as IDPs (Internally Displaced Persons) and thousands more are in refugee camps in Thailand.

 "Most relocation sites are located close to military camps, army bases and along main roads. This increases the vulnerability of exploitation and abuse. IDPs are subjected to force labour demands from the soldiers and arbitrary taxation (essentially theft). IDPs are also vulnerable to torture; murder and rape by soldiers and their movements are heavily restricted."

"The relocation sites are also inadequate to sustain a healthy and economically viable livelihood. The majority of relocation sites do not have sanitation facilities, electricity or access to safe drinking water. The land surrounding the sites is often barren and over populated. As productive land has usually been claimed by the original inhabitants or confiscated by the soldiers, opportunities to farm are limited. There are also very few employment opportunities in forced relocation sites."

On 7 March 2012, the government of Myanmar signed a ceasefire agreement with the KNPP, in the presence of international observers from the UN High Commission for Refugees, British Council and the American embassy. A similar ceasefire deal was signed in 1995, but it was dissolved within three months.