History of Karagwe District dates from 500.000 year ago, when hunters lived in the area.

Although little is known of those people, some stone-age tools are still found even today. The first documented information concerning the district concerns the immigration and settlement of the first Bantu-speaking (Banyambo) farmers between the 5th and 10th century. With the introduction of iron technology, new tools for land clearing and soil tillage were introduced, resulting in new farming methods and introduction of new crops (e.g. sorghum, millet, yams). Remnants of potsheds even suggest that livestock was kept and integrated with agriculture. Early 15th century, Karagwe was invaded by the Bachwezi and the Bahinda. The latter created the Bahinda empire with Bwehange as its capital. During that time, an indigenous wild robusta coffee specie was known and its use was limited to ritual practices.

By the end of the 18th century, Karagwe was known for its prosperity and entrepreneurs came to trade copper, salt, pepper, millet and oranges for local products. Around 1800, cooking banana and beans were introduced from Uganda. Early 1840, Arabs arrived and trade flourished, especially the slave trade. The cowrie was introduced as hard currency and many new crops were introduced (e.g. sweet banana, maize, cassava, pawpaw, tomatoes, vegetables and citrus fruits).