Incorporated in 1956, the Club was organized in 1955 as a Community Club in Harbor View on Cox Creek. The current site, on Buckhorn Peninsula at Kent Narrows, was acquired to provide a more suitable location for the members' visions of the future, which included encouragement of the sport of yachting and boating, the promotion of the science of seamanship and navigation. Their new clubhouse was opened in 1957. During the following decade, membership grew and the facility flourished until January 1, 1969, when a fire tragically destroyed the clubhouse. The vision, however, was not destroyed and on May 10, 1969, a new clubhouse, built by the labor of the members, was dedicated. The membership has continued that tradition of renewal and improvement over the years with additions and enhancements to the clubhouse. The last was in 2000: an addition of much needed space and convenience paid for and built entirely with member donations and labor. In 2004, Hurricane Isabel nearly destroyed the clubhouse in September, but members rebuilt, redecorated, and refurnished the clubhouse to reopen for business in December.

KIYC is the home of the Kent Island Outrigger Canoe Club (KIOCC), Maryland's first Hawaiian Outrigger Canoe Racing Team which competes up and down the Eastern Seaboard and hosts the annual Kent Island Cup Race. The KIOCC hosts several times a year outrigger canoe training and racing events for the Wounded Warriors Disabled Sports Project, a program designed for severely wounded service members from the Iraq and Afghanistan conflict and the Global War on Terrorism.

The Thunder on the Narrows Power Boat Races, the 4th of July fireworks in the Narrows, and the annual Boat Parade of Lights to start the Christmas season are a few of the events for which KIYC hosts the public.

KIYC regularly hosts fund-raisers for contributions to local charities, especially local volunteer fire departments

Yacht Club members enjoy a full calendar of activities year round that range from casual to elegant:

• Cruises to other Bay locations include the Shakedown, Annual Vacation, Anchor Out, Mates’, Frostbite and Mystery (on land) Members are welcome to join in any cruise, whether by boat or by land.
• Picnics for the family are always a hit on Memorial Day, the 4th of July, and Labor Day.
• Kids are not forgotten as they are special guests for the Easter Bunny Lunch, Christmas with Santa and a Haunted Halloween Party.
• Parties or feasts celebrate and create a number of occasions such as Super Bowl, St. Patrick's Day, Mother's Day, Oyster and Bull Roasts, the Fleet Review, "Celebrity" Bartenders, Turkey Shoots, Jimmy Buffett and Christmas in July.
• Dances with DJ's and bands, and food lend to a special holiday atmosphere to celebrations such as Christmas, Valentine's, Halloween, and Opening Day,
• New Year's Eve and the Annual Commodore’s Ball are among the formal events.

• An elegant dining room for dinner service on Wednesday, Thursday, Friday, Sunday, as well as Saturday lunches
• A 41 slip marina for long-term and transient use
• A lounge and patio for casual dining, relaxed conversation, regular Friday night entertainment, or enjoying panoramic views of Prospect Bay.
• A fenced swimming pool with adjoining bathhouse.
• Two covered pavilions with picnic tables.
• A playground equipped for kids.

Photos of the lounge and the covered pavillion