The name means "nice home" in the Xhosa language, from khaya meaning "home" and mnandi meaning "nice". It was founded in the early 1950s as part of the increased segregation during the apartheid regime. It was originally built to house exclusively black migrant male labourers employed on the farms in the Stellenbosch area. In 1966, the nine largest employers in the Stellenbosch district including Stellenbosch University, the town administration, several vineyards and a fruit packing company united to erect 38 ready-made homes, so called hostels.
The principal language spoken in Kayamandi is Xhosa, a tonal language which incorporates the use of click consonants, although there is widespread knowledge of both English and Afrikaans.
^"SU staff visits various communities". Stellenbosch University. 17 August 2011. Retrieved 19 July 2013. "In terms of the Group Areas Act, black people were relocated from an informal settlement near Distell and from the residential areas of Idas Valley, Du Toit Station and Jamestown to Kayamandi."
Kayamandi is one of the Developing Townships situated in Stellenbosch, there are many projects interesting ones done by young and old people of Kayamandi. projects such as Kayamandi Arts and Culture Festival. between 1994 and now Kayamandi has manages to produce soo many Graduates situated in other communities around the world, there are 4 schools in Khayamandi high,Makhuphula high,Ikaya Primary and Kayamandi Primary. there are about 27 registered preschools and more than 10 registered organisations such as Vision Africa, Prochorus, Lokxion foundation, Legacy Center, Trust Center,Songo.info, imbadu etc.